Mercedes-Benz's strong Q1 profits benefit from smart pricing strategies  

Despite a fall in sales numbers compared to last year's first quarter, Mercedes-Benz boosts profits with pricing power. 
By : HT Auto Desk
| Updated on: 29 Apr 2022, 12:36 PM
File photo used of representational purpose only.
File photo used of representational purpose only.
File photo used of representational purpose only.
File photo used of representational purpose only.

Mercedes-Benz announced strong financial results in the first quarter of 2022 that has been boosted by pricing and focus on top-end vehicles and premium vans along with the company's ongoing cost structure. These steps have lifted sales of Mercedes-Benz Cars to 16.4 per cent and of Mercedes-Benz Vans by 12.6 per cent. Mercedes-Benz also informed that the pandemic, shortage of semiconductors and the going war between Russia and Ukraine continue to impact the business.

Mercedes-Benz shared that despite strong demand, the overall sales fell by 10 per cent compared to last year's first quarter. The premium carmaker sold 4,87,008 vehicles against 5,38,869 vehicles in quarter one of 2021. However, the price and improved product mix helped to register positive revenues despite the markets being volatile. Deliveries of top-end vehicles, namely Mercedes-Maybach, Mercedes-AMG, G-Class, S-Class, GLS and EQS, increased by 5 per cent to 78,000 vehicles during the same period. Top-end vehicles, currently, account for 16 per cent of the overall volume of the luxury automaker. Sales of Mercedes-Benz Cars hybrid and electric models also grew by 19 per cent during the quarter to 74,000 vehicles.

Similar Cars

Find More Cars
Mercedes-benz A-class Limousine (HT Auto photo)
Mercedes-benz A-class Limousine
1332 cc | Petrol | Automatic (Dual Clutch) | 17.5 kmpl
₹39.9 - 43.2 Lakhs**Ex-showroom price
Mercedes-benz G-class (HT Auto photo)
Mercedes-benz G-class
2925 cc | Diesel | Automatic (Torque Converter) | 9.35 kmpl
₹1.62 - 2.45 Cr**Ex-showroom price
Mini Countryman (HT Auto photo)
Mini Countryman
1998 cc | Petrol | Automatic (Dual Clutch) | 14.34 kmpl
₹40.5 - 43.9 Lakhs**Ex-showroom price
Volvo Xc40 (HT Auto photo)
Volvo Xc40
1969 cc | Petrol | Automatic (Torque Converter) | 14.49 kmpl
₹41.25 Lakhs**Ex-showroom price
Mini Clubman (HT Auto photo)
Mini Clubman
1998 cc | Petrol | Automatic (Dual Clutch) | 14 kmpl
₹41.9 Lakhs**Ex-showroom price
Mercedes-benz Amg A35 Limousine (HT Auto photo)
Mercedes-benz Amg A35 Limousine
1991 cc | Petrol | Automatic (Dual Clutch) | 13.39 kmpl
₹57.6 Lakhs**Ex-showroom price

(Also read | 2022 Mercedes-Benz C-Class starts rolling out of assembly line ahead of launch)

Chief Financial Officer of Mercedes-Benz Group AG Harald Wilhelm said in these current scenarios resilience and pricing power are crucial. “Our sharpened focus on desirable top-end and electric vehicles, combined with ongoing cost discipline, allowed us to deliver strong earnings despite numerous headwinds," said Wilhelm. Mercedes-Benz is also focusing on scaling up the production of electric vehicles and accelerating software development, he added.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

Mercedes-Benz said it expects supply constraints related to semiconductors and other industrial products and the Covid-19 pandemic to impact business for the remainder of the year. The company added it will continue to monitor the supply chain risks closely to react flexibly if needed.

 

 

First Published Date: 29 Apr 2022, 12:36 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city