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Tuesday, December 6, 2022

Automotive industry: Expert: Price pressure for Mercedes in China “takes it very seriously”

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Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
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In its most important market, China, Mercedes-Benz recently had to tighten the price screw for some models. For car expert Ferdinand Dudenhöffer, the group should now fundamentally rethink some things.

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According to car expert Ferdinand Dudenhöffer, the fact that Mercedes-Benz had to lower prices for some models in China should give the group management reason to rethink. “In my opinion, this should be taken very seriously,” Dudenhöffer told the German Press Agency. It shows that the focus on high-priced vehicles proclaimed by the Stuttgarters is risky. “One should think again very carefully whether this is a stable strategy for the future.”

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For the purely electric models EQE and EQS, Mercedes had reduced the sales prices in its most important market, China, in some cases significantly. A spokesman said on Wednesday that the profit margins of the battery-electric top models in China would remain at a healthy level. Global demand for Mercedes cars remains robust, including in China. The share price dropped significantly. The electric car manufacturer Tesla also recently reduced prices in China.

“Many people are surprised that people are doing such a quick belly landing like they are doing in China,” said Dudenhöffer. The prices were wrong, and Mercedes promised too much. Instead of continuing to rely on “luxury frills”, the car manufacturer must also focus on mass production again, as with the A-Class. This has many cost advantages: software can be programmed once and used for other models. You also have price advantages when purchasing batteries.

Source: Stern

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