Daimler CEO Dieter Zetsche announced this week that Mercedes is not willing to sacrifice its current profit margins for the sake of selling more cars.
In other words, the company with the three-pointed star logo won’t reduce prices or make bigger discounts to lure in more buyers while it battles BMW and Audi in the race for the best-selling luxury marque. Last year, Mercedes nestled between the two with 1.87M units, more than Audi’s 1.80M, but less than leader BMW which managed to shift 1.91M vehicles.
Zetsche wants Mercedes to take the lead by the end of the decade while maintaining the current pricing policy. He believes that if Mercedes will take the luxury sales crown from BMW, this will generate additional sales for the brand. Zetsche is confident about the company’s future in China even though the market is estimated to grow by only 8% in 2016. He went on to specify the launch of the new BMW 7 Series did not have a negative impact on S Class sales.
Mercedes is on the right track to increase volume this year as last month the company’s deliveries went up by a significant 20% thanks to a massive 52% sales hike in China compared to January 2015. With new models on the horizon such as the C Class Cabriolet, GLC Coupe, and E Class Estate, Mercedes seems to have a bright future ahead.