Mercedes-Benz managed to achieve higher profits in the first three months of the year, mainly by selling more luxury models. Among other things, Vans from the most expensive part of the German car group sold well. Mercedes-Benz also absorbed higher material costs and price increases.
April 28, 2023
Net profit rose 12 percent in the first three months compared to the same period last year, to more than 4 billion euros. Earlier this month, the automaker reported that it had sold 3 percent more passenger cars. In addition, sales of cargo vehicles increased by 12 percent, despite “ongoing challenges in transportation”. This resulted in sales of 37.5 billion euros, 8 percent more than the first quarter of 2022.
Automakers suffered last year from shortages of parts, such as chips. This also led to long waiting times for new cars, which now accounts for part of the growth. Looking ahead, Mercedes-Benz said that barriers in global supply chains are gradually disappearing. Therefore, the luxury car market is likely to continue to grow despite inflation and a slowdown in economic growth.
Mercedes-Benz also reported that its electric vehicles are selling well. For example, the company sold almost 90 percent of passenger cars that use electricity. Sales of electric vehicles increased by 22 percent.