Mercedes is looking to produce high-end electric cars to increase profits

Products such as the EQS AMG and EQS SUV will increase profits.

Mercedes expects sales of its high-end electrified products to grow next year when the automaker brings a slew of luxury cars to market, Autocar reports.

The automaker anticipates this increase in luxury electric vehicle sales despite an overall stabilization in overall deliveries.

Mercedes is looking to produce high-end electric cars

Last year, Germany's oldest automaker said it would adopt a new business strategy that would see it focus on high-end cars such as the EQS SUV and Maybach models.

The US-made electric car starts at $104,400, putting it in the crosshairs of competitors like the Tesla Model X and BMW iX.

Mercedes hopes to double electric vehicle sales this year, which is tough in a market that seems to be catching up with a luxury electric competitor every other day.

It's entirely plausible that the automaker would achieve this goal, as demand for Mercedes-EQ models remains strong.

Last year, the company couldn't keep up with customer demand for its electric vehicle offerings.

The company also expanded the Maybach range with the electric S580e, the first-ever plug-in hybrid sold under the ultra-luxury sub-brand.

This new strategy has clearly worked for the company, as Mercedes averaged about $77,700 last year.

That's much higher than it was in 2019 (about $54,900) and 2021 (about $71,500).

Part of this rise in average prices has to do with the amazing success Maybach has had in markets like China, for example.

Last year, the Maybach division sold 21,600 cars, the report says, with nearly 1,100 cars going to China each month.

We anticipate that the upcoming EQS AMG and EQG will contribute significantly to the automaker's goals.

Mercedes management in Stuttgart must be very pleased with the strategy chosen, as profits grew by 28% from 2021 to 2022, with EBIT of around $21.8 billion.


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