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Mercedes-Benz sets sunny scenario margin target of 14% by 2025
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BERLIN (Reuters) – Mercedes-Benz raised its margin target in favourable circumstances to 14% by 2025 from a previous target of 10% or higher, the company said on Thursday, as it reorients its strategy towards higher-margin luxury vehicles.
BERLIN (Reuters) – Mercedes-Benz raised its margin target in favourable circumstances to 14% by 2025 from a previous target of 10% or higher, the company said on Thursday, as it reorients its strategy towards higher-margin luxury vehicles.
The premium carmaker will dedicate 75% of its investments to top-end vehicles and its highest-selling segment of “core luxury” C-Class and E-Class models, it said, while reducing the number of entry-level models to four from seven.
It projected a 60% rise in the sales share of its top-end models, at 11% in 2019, within four years, with the Chinese market offering the highest growth potential.
(Reporting by Victoria Waldersee, Editing by Miranda Murray and Rachel More)
A margin target is a financial goal set by a company to achieve a specific profit margin percentage on its sales. It reflects the company's strategy for pricing, cost management, and overall profitability.
Luxury vehicles are high-end cars that offer superior quality, performance, and features compared to standard models. They often come with premium materials, advanced technology, and enhanced comfort.
The Chinese market is significant for automotive sales due to its large consumer base and increasing demand for luxury vehicles. It presents substantial growth opportunities for car manufacturers.
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