Mercedes-Benz sets sunny scenario margin target of 14% by 2025

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)