Mercedes-Benz sales have been boosted by the sales of Maybach limousines, G-Wagon SUVs, and AMG high-performance cars.
The company reported that the strong demand in Germany, the US and globally for battery-powered vehicles and a doubled number of sales of these expensive vehicles helped to drive the gains in the second half of the year.
The sales rose by 5pc over the last three months, ending in June. Mercedes-Maybach sales increased 39pc while Mercedes-AMG sales rose 19pc.
Mercedes has been moving upmarket in recent years. This strategy has worked, as the richer customers are able to better weather inflation.
Since the pandemic when luxury car supplies were squeezed and wealthy buyers had a surplus of cash, the company has been able raise the prices on its vehicles.
Mercedes AMG A-Class models start at £46,000, but performance levels can go up to £150,000.
Maybach limousines start at £173,000 but can easily exceed £200K with larger engines and more luxurious trim.
The G-Class luxury off-road version starts at £131,000. However, the AMG performance variant costs £43,000 extra.
The German company has said that it will be able match the record earnings of last year, despite indications that some competitors are struggling.
Volkswagen, the rival company, cut its production target and informed investors that it faced tougher competition in China – its largest market. The company’s production target was reduced by up to 500,000 cars due to slower sales in China.
The biggest automaker in Europe is feeling the squeeze as middle-class customers can’t afford to buy the battery cars that it is focusing its efforts on due to soaring inflation.
Volkswagen Finance Chief Arno Antlitz stated: “Competition has intensified and customers are more cautious.”
This week, Volkswagen announced a $700m (£600m) investment in Chinese electric car maker Xpeng as part of its efforts to boost sales in China.
Renault also reported that its margins improved on its vehicles, and it was able to return to profitability for the first six months of the year. It had joined its competitors in cost-cutting exercises.
This week, Stellantis (which owns Citroen Renault and Vauxhall) said that it would pressure suppliers to reduce their prices in order to lower the price of electric cars.