Mercedes-Benz not returning to ‘cheaper’ cars to bolster sales
- 204 views
Luxury German brand Mercedes-Benz has reported 11,189 vehicles as sold so far this year, representing a 23.6 per cent drop over 2023.
At this run-rate, the brand would see total year sales below the 20,000 unit mark, the lowest in over a decade.
However, the brand will not look to ‘cheap’ models as a way to bolster sales.
Speaking with Drive at the launch of the Mercedes-AMG GLC 63 last week, new Mercedes-Benz Australia Managing Director, Jamie Cohen, acknowledged the drop in volume but noted the brand’s strategy of “luxury and desire” would remain paramount.
“Our ambition is not lost, we’ll just do it not by playing the game of discount. We want to play the game of value, technology and knowing who we are”, said Cohen.
“Mercedes will be Mercedes and the customer understands that.”
In terms of considering cheaper cars, “that’s not where we are going”, said Cohen.
Limited and special edition variants of core models, like the recently announced GLA City Edition, are still on the table however as here “the content is defined differently so you will find also the value position is slightly lower.”
“We have to listen to the market, listen to our customers, see what is in demand and adjust differently but without losing that Mercedes identity.”
The past 12 months have seen a changeover in model generation for the brand’s top-selling GLC SUV (2418 sales year-to-date) which, while 7.6 per cent down on the same period of 2023 (2618 sales) combines a period of older-stock clearance and new-stock arrival. Fluctuations like this, says Cohen, are part of the business.
“There are a lot of components in how the sales move and the volume moves – this is a very cyclical market.”
The brand’s electric portfolio is one area on the rise, with 1712 year-to-date sales of the EQ range representing a 26.5 per cent uplift on 2023, largely bolstered by the EQE SUV which accounts for nearly one-third of all Mercedes-Benz electric sales.
At the other end of the efficiency spectrum, the iconic G-Class SUV is seeing a 44.8 per cent growth, with 249 units of the $368,400 AMG G63 twin-turbo V8-powered behemoth sold so far this year.
Ref: Mercedes-Benz not returning to ‘cheaper’ cars to bolster sales (drive)
