The German car manufacturer Mercedes-Benz is focusing on luxury and intends to sell more top-of-the-line models such as the S-Class, Maybach and AMG in the future. “The company will focus even more on the luxury segment, further upgrade the product portfolio, accelerate the path to the all-electric future and strive for structurally higher profitability,” said the listed company on Thursday.
As the largest luxury car manufacturer with a good 300,000 vehicles a year in this segment, the brand with the star wants to build the “most desirable cars in the world”, said Mercedes boss Ola Källenius. At an event with around 100 analysts, influencers and customers in Monaco, he announced that their share of sales should increase by around 60 percent from 11 percent in 2019 to 2026 to a good 17 percent.
According to Mercedes-Benz, the market for expensive, chic luxury cars will grow disproportionately in the coming years – not only in China, but also in Europe and the USA. Credit Suisse estimates that the number of dollar millionaires will rise to 84 million by 2025. The German car company is therefore fanning out the range in the top of its three segments with cars that cost from 100,000 euros and up. Even more expensive special editions for collectors are to be built in small numbers in the manufactory. “Many customers are willing to pay a surcharge for this luxury,” said head of development Markus Schäfer in an interview with Reuters.
In contrast, Mercedes-Benz has reduced the entry-level segment of compact cars from seven to four models. It will be called “Entry Luxury” in the future. What will be completely eliminated from the A, B or C class in the age of electric cars remained open. The cheapest Mercedes should offer more comfort in the future, explained Schäfer. “We’re moving up in terms of content and technology. We will massively enrich these vehicles.” Schäfer still wants to keep the costs under control. Digitization should accelerate development and simplify production.