Mercedes-Benz has experienced a boost in sales, thanks to a surge in demand for Maybach limos, G-Wagon SUVs, and high-performance AMG cars. The company attributed this growth to strong sales in Germany and the US, as well as a significant increase in battery-powered vehicle sales worldwide during the second quarter of the year.
During this period, sales increased by 5%. Notably, sales of Mercedes-AMG cars rose by 19%, while Mercedes-Maybach limousine sales saw a significant 39% increase. This upward trend can be attributed to Mercedes’ focus on targeting wealthier customers and shifting towards the higher-end market.
Mercedes-Benz was able to raise prices on its cars due to the pandemic. While the supply of luxury cars was limited, affluent buyers had ample cash to make high-priced purchases. For example, the base price for a Mercedes AMG A-Class is £46,000, but it can reach over £150,000 for the performance range.
The starting price for Maybach limousines with 500 horsepower is £173,000, but it quickly exceeds £200,000 with additional features and enhancements. Similarly, the luxury G-Class SUV starts at £131,000, with the AMG performance version costing an extra £43,000.
Despite seeing some rivals struggle, Mercedes-Benz remains optimistic about its performance and expects to match last year’s record earnings. In contrast, Volkswagen has had to reduce its production targets due to tougher competition in China, its largest market. Decreased sales in China have forced Volkswagen to cut its production target by up to half a million cars to 9 million.
Competition and cautious customers are posing challenges for Volkswagen, especially as its middle-class customers are finding it harder to afford higher-priced battery cars due to inflation. Volkswagen’s finance chief, Arno Antlitz, acknowledged this intensifying competition and customer caution.
In an effort to revive its sales in China, Volkswagen recently announced a $700 million investment in Chinese electric vehicle maker Xpeng.
Renault, on the other hand, experienced an improvement in margins and returned to profitability in the first half of the year after implementing cost-cutting measures. Stellantis, the owner of Citroen, Renault, and Vauxhall, also announced plans to pressure suppliers into reducing prices to lower the overall cost of electric cars.
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