German automaker Mercedes-Benz initially anticipated weak sales in the first quarter, considering the global economic uncertainty caused by numerous factors, including the COVID-19 pandemic and supply chain constraints.
Now, Chairman Ola Källenius announced via CGTN Europe that the automaker is planning to capitalize on China. Mercedes-Benz expects that the elimination of the country’s strict COVID-19 regulations can enable the industry to rebound. In return, it can boost the automaker’s car sales.
That said, the German car giant is closely monitoring the economy, which it believes in boosting the auto market in late 2023.
“For the automotive industry we will see a spillover into the first quarter from this period of being away from zero COVID to a full opening up. But we can also see that the government and the policy makers are working on stimulating the economy.”
We’re watching this carefully, and it could lead to a rebound of the economy and thereby also the car market later in this year.”
Chairman Ola Källenius
Mercedes-Benz Chairman’s confidence in the Chinese auto market
China’s major electric vehicle subsidies already expired at the beginning of this year. Nonetheless, Chairman Ola Källenius argued that the lack of EV subsidies would not significantly impact EV sales in the world’s largest auto market.
“Most of the incentivization has been on the lower end of the market, below where the product offering of Mercedes-Benz starts. Ultimately, market forces alone are going to have to be what decides on how the EV market develops.”
Chairman Ola Källenius
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Moreover, the executive also expressed his confidence in young customers’ willingness to own cars. Chairman Källenius noted that Gen Y is among the company’s top markets, with plans to pursue Gen Zs.
It is also worth noting that Mercedes-Benz announced late last month plans to expand its autopilot driver assist system “Drive Pilot” in China. This technology will undoubtedly entice more customers to opt for Mercedes cars, considering it currently leads the autonomous driving sector.
