Mercedes-Benz 2023 Car Sales Were Flat While Audi's Jumped
12 January 2024 - 2:19AM
Dow Jones News
By David Sachs
Mercedes-Benz car sales were stable last year while Audi's rose
after both German luxury-vehicle companies said they would pursue
value over volume.
Volkswagen-owned Audi said Thursday that it delivered 1.9
million cars in 2023, 17% more than the prior year. Mercedes sold
just over 2 million cars, which was steady compared with 2022. The
Vans business pushed group vehicle sales to 1.5% higher than in the
previous year.
Mercedes hit its goal of flat unit sales, with executives more
interested in maintaining premium-level pricing than increasing
sales volumes. In its last annual report, the German carmaker said
it would have a "special focus" on top-end models in 2023. On the
year, sales of top-end models were unchanged while entry-level
models grew by 4%. The German company's "core" segment, which
comprised most of its sales last year, fell by 2% on supply
bottlenecks and the changeover to the new E-Class, it said.
The company targeted an adjusted return on sales of between 12%
and 14% for its cars division.
Volkswagen, whose Audi brand also hit its target for car sales,
similarly said it would favor pricing power over sales volume. Audi
car sales grew 13.5% in China and Hong Kong, where analysts say
intense competition has driven down car prices. Mercedes sales fell
2% in China on the year.
Audi Chief Executive Officer Gernot Doellner welcomed the high
demand in China and elsewhere.
"At the same time, we recognize that 2024 will be a challenging
year due to increased competition and global economic
uncertainties," Doellner said. "This makes it all the more
important to follow a clear plan that addresses these challenges
and focuses on the profitability of our vehicles."
The other major German luxury-car company, BMW, said Wednesday
that it sold more than 2.5 million cars in 2023, a 6.5% increase
from the previous year.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
January 11, 2024 10:04 ET (15:04 GMT)
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