Mercedes-Benz Group AG

Mercedes-Benz Group AG (XETR: MBG) is one of the largest luxury automakers in Europe. Originally founded in 1926 under the name Daimler-Benz AG, following the merger of Benz & Cie. with Daimler-Motoren-Gesellschaft, the company has gone through many restructures. In 1998, Chrysler Corporation was acquired, only to be sold nine years later. In February 2022, following the spin-off of Daimler Trucks the previous year, the company rebranded from Daimler AG to Mercedes-Benz Group AG, with a stronger focus on luxury and premium cars and vans. Mercedes-Benz was ranked the world’s most valuable luxury automotive brand in Interbrand’s “Best Global Brands 2022” survey and generated EUR 150 billion (~USD 159 billion) revenue in 2022.

MBG primarily offers automobiles under three value propositions: Top-End Luxury (Mercedes-AMG and Mercedes-Maybach brands as well as premium models Mercedes-EQ and Mercedes-Benz brands), Core Luxury (Mercedes-Benz C-Class and E-Class), and Entry Luxury (Mercedes-Benz A-Class and the smart brand). The share of electric vehicles (EVs) sold stood at ~16% of total unit car sales in 2022. MBG also makes vans for commercial and retail use and offers various services such as financing, leasing, insurance, car rental, fleet management, and payment.

China, the US, and Germany are the top three markets for MBG, accounting for ~32%,~15%, and ~13% of total unit sales in 2022, respectively. MBG manufactures cars and vans in China through multiple JVs with BAIC Motor and Fujian Motor Industry Group. The company intended on augmenting its car portfolio mix by growing the share of its Top-End Luxury segment to 60% of its total revenues compared to the 2019 mix. It also hoped to achieve an operating profit margin of ~14% by 2025 under favorable market conditions (from ~14% in 2022). The automaker planned to become an all-electric automaker by 2030 and achieve carbon neutrality across its value chain by 2039.