Mercedes-Benz releases 2021 financial report, net profit achieves substantial growth

When it comes to luxury car brands, I believe that many consumers will first think of Mercedes-Benz. Not only launched a variety of classic models, but also led the development trend of the automotive industry, especially in the field of cutting-edge technology. Recently, the German car company announced its financial data for 2021. Affected by the shortage of automotive chips and other factors, how is its performance?

The Group's turnover increased steadily and net profit achieved rapid growth

Looking first at the turnover figures for 2021, Mercedes-Benz Group AG said it achieved a total turnover of 168 billion euros last year. In 2020, it will be 154.3 billion euros, and in terms of performance, it will rise steadily.

For Mercedes-Benz, it is not easy to achieve this result. As we all know, in the last year, most car companies were affected in terms of supply chains. Especially luxury brands such as Mercedes-Benz have a much higher demand for chips than civilian brands.

In terms of net profit, it has always been the focus of investors' attention. Kang Linsong, chairman of the board of directors of Mercedes-Benz Group AG, said that in 2021, the group's net profit will reach 14.2 billion euros, which is quite eye-catching. In contrast, in 2020, its net profit is only 4 billion euros. According to officials, the sales profit margin of Mercedes-Benz's passenger car and light commercial vehicle business segment reached 12.7% last year. It can be seen from this point that consumers are willing to pay a higher brand premium for Mercedes-Benz.

Overall sales fell slightly, but sales of high-end cars hit a record

Anyone familiar with the auto market knows that globally, BMW has won the luxury brand sales championship in 2021. While Mercedes-Benz was dragged down by supply chain instability, its total sales for the year were about 2.33 million units, down 5% year-on-year.

Under the influence of the unfavorable factor of falling sales, why has Mercedes-Benz Group AG bucked the trend and achieved a substantial increase in net profit?

Kang Linsong, chairman of the board of directors of the group, revealed that Mercedes-Benz's sales in the high-end car series increased by 30%, which is a very good performance. In the Chinese market, high-end cars are also very sought after by consumers, and terminals are in short supply.

In addition to new sales records for high-end models, Mercedes-Benz Group AG is also continuously reducing operating costs. It is reported that the fixed costs of its global passenger car business have been reduced by 16% in 2021. Therefore, it was only possible to achieve such an excellent net profit performance last year.

Electrification is the current strategic focus, and Mercedes-Benz will launch a series of new models

At the same time as the announcement of the financial data for 2021, Kang Linsong, Chairman of the Board of Directors of Mercedes-Benz Group AG, once again reiterated the strategic focus, that is, the process of electrification. Specifically, it continues to increase investment in pure electric models, and said that it plans to launch more electrified new cars this year, a total of 8 models. In addition to pure electric models, there are also plug-in hybrid models. It is worth mentioning that the pure electric vehicle EQE will be introduced into China and put into production.