Mercedes To Shift Focus To Higher Luxury Car Segments; Introduces New Mythos Brand

Mercedes announced its new long term business plan late last week revealing a shift in focus towards its top-end and core luxury models. The company revealed that more than 75 per cent of its future investments would be in these segments with product offensives from Maybach, AMG and the G-class including dedicated EV models. The company also confirmed the debut of the new E-class next year along with a China-specific EV based on the company's new EVA2 platform. Also announced was a new Mythos sub-brand aimed at car collectors and enthusiasts.

However, with the greater focus on higher segments, the company has announced that it will be reducing its entry-level portfolio. Going forward the company has said its entry segment will be reduced to just four models though they will be positioned above its current range.

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Mercedes said that it was focusing on its top-end and core segments over greater profitability in the segments. Mercedes defines the top-end segment as the S-Class, GLS, G-Class, AMG, Maybach, the S-class equivalent models under the EQ brand, limited editions and collaboration models. The core luxury segment meanwhile houses the C-class and E-class and their derivatives.

A Mercedes SL-based Speedster is set to be the first model under the new Mythos brand.

The carmaker said that it planned to grow the sales share of its top-end models by about 60 per cent by 2026 as compared to its global sales in 2019. “This greater focus on the top end of the market should enable the company to deliver a strong financial result even under more challenging market conditions,” the company said in a statement.

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The company also said that a Maybach version of the new SL was on the cards with a concept set to debut soon. Mercedes also revealed its intension to expand the G-class family with more derivatives likely on the card along with the already confirmed electric EQ model. Mercedes-Benz also announced the creation of a new Mythos Series of collector cars. The company said that the series would feature limited-run models and would only be made available to dedicated enthusiasts and Mercedes-Benz collectors. The company also confirmed that the first model under the new Mythos brand would be a SL-based Speedster.

Mercedes-Benz design head Gordon Wagner also shared a teaser for a new Maybach SL concept on social media.

“Mercedes-Maybach is expanding its product offering in the Top-End segment, led by the Mercedes-Maybach EQS SUV, which is scheduled for market launch next year. In addition, the preview of a Mercedes-Maybach SL reveals more about the future opportunities of the company's most exclusive brand,” the company revealed.

“What has always been the core of our brand is now also the core of our strategy: the luxury segment. We are further sharpening the focus of our business model and product portfolio to maximise the potential of Mercedes-Benz even in challenging conditions. At the heart of that is our goal to build the world's most desirable cars,” says Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group.

Mercedes' new long term goals calls for greater focus on higher segments.

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Moving to its core range, the company confirmed that the next-gen E-class was set to debut in 2023. Mercedes also revealed that it was accelerating its EV development with a third model, outside of the EQE sedan and EQE SUV, developed specifically for China.

Moving to its entry range, Mercedes said it would reveal the first of its new-gen models based on the new MMA platform in 2024 with the cars featuring the company's new Mercedes-Benz Operating System. The company also revealed that its new range of cars would also redefine the segment with the model numbers reduced from the current seven to just four.

The company also announced plans to streamline parts of its sales and after-sales experience including tailoring equipment packs for markets. The company said it hoped to reduce the time taken by customers to configure their cars as well as simplify the process.