The car market follows the fashion market. Car manufacturers are aiming at the top end of the range, not least so as not to suffer from Asian competition. For example, Mercedes is investing in the premium and luxury range to increase margins. The German carmaker’s goal is to increase sales of the top-end luxury class by 60% by 2026. Meanwhile, Beijing is not standing idly by. In fact, Chinese production also seems to be moving towards SUVs, supercars and luxury models, partially disengaging from the development of compact city cars.
Increasing margins
Mercedes is taking one step backwards in electrics, and two steps forwards in luxury. The offer of premium and luxury cars covers 75% of its entire range, and to the development of this segment has been proportionally allocated 75% of the investment budget. Objective: to increase revenues and margins. Mercedes will in the future discontinue the B-Class offer, while the so-called “entry luxury range” will be reduced from 7 to 4 models (source: Il Sole 24 Ore), and the luxury offer will be broader. Mercedes’ push towards luxury will also serve to compensate for a lower than expected response from the EQ electric family. That of Mercedes is not an isolated choice, as the 2023 numbers also report. Lamborghini +10% in volume; 11 more cars delivered by Rolls-Royce; BMW up 14.3% in sales for a total of more than 200,000 units.
Beijing does not stand idly by
In China too, automotive strategies are increasingly geared towards the needs of Chinese luxury consumers who, by the way, are the youngest in the world. While Western brands focus on partnerships with local companies and customisation services, Chinese car manufacturers’ production for the domestic market is growing. Great Wall, one of the major local giants, has designed a new model that wants to rival the Rolls Royce Ghost. Obviously, at more competitive prices (source: flopgear.it).
Read also:
Credit: Source link