AGL 40.10 Increased By ▲ 0.10 (0.25%)
AIRLINK 131.01 Increased By ▲ 1.48 (1.14%)
BOP 6.94 Increased By ▲ 0.26 (3.89%)
CNERGY 4.57 Decreased By ▼ -0.06 (-1.3%)
DCL 8.86 Decreased By ▼ -0.08 (-0.89%)
DFML 42.61 Increased By ▲ 0.92 (2.21%)
DGKC 84.50 Increased By ▲ 0.73 (0.87%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 78.11 Increased By ▲ 2.64 (3.5%)
FFL 12.16 Increased By ▲ 0.69 (6.02%)
HUBC 110.19 Decreased By ▼ -0.36 (-0.33%)
HUMNL 14.49 Decreased By ▼ -0.07 (-0.48%)
KEL 5.58 Increased By ▲ 0.19 (3.53%)
KOSM 8.45 Increased By ▲ 0.05 (0.6%)
MLCF 39.35 Decreased By ▼ -0.44 (-1.11%)
NBP 64.30 Increased By ▲ 4.01 (6.65%)
OGDC 199.00 Decreased By ▼ -0.66 (-0.33%)
PAEL 26.42 Decreased By ▼ -0.23 (-0.86%)
PIBTL 7.70 Increased By ▲ 0.04 (0.52%)
PPL 159.60 Increased By ▲ 1.68 (1.06%)
PRL 26.42 Decreased By ▼ -0.31 (-1.16%)
PTC 18.53 Increased By ▲ 0.07 (0.38%)
SEARL 82.89 Increased By ▲ 0.45 (0.55%)
TELE 8.13 Decreased By ▼ -0.18 (-2.17%)
TOMCL 34.44 Decreased By ▼ -0.07 (-0.2%)
TPLP 9.01 Decreased By ▼ -0.05 (-0.55%)
TREET 16.96 Decreased By ▼ -0.51 (-2.92%)
TRG 59.51 Decreased By ▼ -1.81 (-2.95%)
UNITY 27.65 Increased By ▲ 0.22 (0.8%)
WTL 1.42 Increased By ▲ 0.04 (2.9%)
BR100 10,694 Increased By 287.2 (2.76%)
BR30 32,068 Increased By 354.9 (1.12%)
KSE100 99,135 Increased By 1806.2 (1.86%)
KSE30 30,909 Increased By 716.2 (2.37%)

FRANKFURT: German carmaker Mercedes-Benz said Thursday it would focus more on high luxury vehicles in the hope of boosting profit margins.

Luxury had “always been the core of our brand” and would become the cornerstone of the manufacturer’s strategy, Mercedes-Benz CEO Ola Kallenius said in a statement.

The group said it will commit 75 percent of its investments to the top two-thirds of its product range.

Mercedes aimed to increase by 60 percent the share of its sales from the upper tier “Top-End Luxury” autos.

With the renewed focus and more “limited edition” models, Mercedes is aiming to boost its profit margins.

The Stuttgart-based manufacturer is targeting margins of 14 percent “in favourable market conditions” and 12 percent “in fair market conditions” by the middle of the decade.

Greater headwinds would see the figure drop between 8 and 10 percent.

The group is looking to double-down on recent developments that have seen it benefit from rising prices for luxury models as component shortages have limited supply of cars.

In the first quarter of this year, sales fell by 10 percent on the same period last year, while its net profit increased by 3 percent to 3.6 billion euros ($3.8 billion) supported by sales of top-of-the-range vehicles.

Between January and March this year, Mercedes’s profit margin sat at 16.4 percent.

The group is still aiming for its fleet to be completely electric “wherever market conditions allow” by 2030.

In its mid-range “Core Luxury” segment, Mercedes would develop add a “further model” for the Chinese market.

“China is important for this growth strategy but it is not the only growth market,” Kallenius told a press conference.

Even in Europe, where the number of cars was expected to remain stable, Mercedes saw an increasing number of “clients for premium and luxury offerings”, Kallenius said.

Comments

Comments are closed.