Sell fewer cars, but sell them more for a higher margin. Here is a strategy recently adopted by several manufacturers, notably BMW or Renault, and the results seem to be paying off. Indeed, when the results of BMW and, today, Mercedes are published, these brands sell fewer cars, but make more money.
Mercedes announced that it increased its net profit by 12% in the first quarter of this year to four billion euros, thanks in particular to increasing sales of the most expensive models.
Sell less, but sell better
The turnover of the German manufacturer increased by 8% compared to the same period last year, reaching 37.5 billion euros. despite supply chain disruptions“, the press release states. The operating profit of the group amounted to 5.5 billion euros, which is 5% more than last year.
Such good results can be explained, in particular, by a 3% increase in the total sales volume of the group, and in particular electric cars, the number of which has more than doubled, which is 10% of sales. As a result, sales of top-of-the-range cars, which provide the best margins, increased by 18%.
The United States as a point
Mercedes sales also increased in certain markets, particularly in the United States, where the manufacturer is registered 327% increase in sales of electric cars. after the Biden administration’s campaign to get Americans to buy more electric cars.
In Europe, due to high prices, sales of electric Mercedes models are not growing so much, especially since state aid is gradually starting to disappear.
Increased sales of high-end models have already allowed Mercedes to post good results in 2022, despite component shortages following the pandemic and inflation linked to rising energy costs following the war in Ukraine.
Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.