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Mercedes-AMG EQS & EQS SUV Will Lead The Charge Toward Increased Profits

Mercedes-Benz | Mercedes-AMG 22/02/2023 1 Comment
Mercedes-Benz | Mercedes-AMG
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Mercedes expects that sales of its top-shelf electric products will grow in the coming year as the automaker brings a slew of high-end luxury vehicles to market, reports Autocar.
 

The automaker anticipates this surge in posh EV sales despite forecasting an overall stabilization in overall deliveries. Last year, Germany’s oldest carmaker said it would adopt a new business strategy that would see an emphasis placed on high-end vehicles like the EQS SUV and Maybach models.
 
Coincidentally, it’s the aforementioned luxury SUV – and its forthcoming Maybach sibling – that is expected to drum up business for the brand. The US-built EV has a starting price of $104,400, putting it in the sights of capable rivals like the Tesla Model X and BMW iX.
 
Mercedes is hoping to double EV sales this year, which is a tall order in a marketplace that seemingly gains an electric luxury contender every second day. It’s entirely plausible that the automaker will achieve this goal, as demand for Mercedes-EQ models remains strong. Last year, the company couldn’t keep up with customer requests for its EV offerings.
 
The company has also expanded the Maybach range with the electrified S580e, the first-ever plug-in hybrid vehicle sold under the ultra-luxury sub-brand. This new strategy has clearly worked for the company, with the average price of a Mercedes reaching around $77,700 last year. That’s significantly higher than in 2019 (approximately $54,900) and 2021 (around $71,500).
 
Part of this surge in average prices has to do with the incredible success Maybach has had in markets like China, for example.
 
Last year, the Maybach division sold a staggering 21,600 cars, says the report, with some 1,100 vehicles going to China every month.
 
We anticipate the rapid EQS AMG and the upcoming EQG (an electric G-Class) will also contribute significantly to the automaker’s goals.
 
The accountants in Stuttgart must be incredibly pleased with the chosen strategy, as profits grew by 28% from 2021 to 2022, with earnings before interest and tax sitting at around $21.8 billion. While Mercedes-Benz hasn’t abandoned the lower rungs of the luxury ladder, the company has expressed an intention to trim its current range down significantly.
 
In the near future, coupe SUVs, station wagons, and four-door coupes will be done away with as the German giant focuses on more profitable models with wider appeal.

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