Product Renewal Should Support Mercedes’ Return to Sales Growth in 2027

In 2022, Mercedes introduced its "economics of desire" strategy, aiming to position itself as a luxury goods company by exiting lower-margin entry-level models and steadily expanding its high-end offerings. The objective was to develop a brand portfolio strong enough to enable pricing power across all economic and market conditions. This has not played out, with brand value shrinking in its previously highest-profit region, China.