Mercedes-Benz says car prices are 'well-supported' in China after Tesla cuts prices of its EVs

Mercedes-Benz concern main connected Wednesday told CNBC the automaker's pricing of its cars successful China is "well-supported" aft U.S. electrical conveyance elephantine Tesla slashed prices.

"We decidedly spot the request being good but besides we spot the pricing levels we enactment into the marketplace being well-supported successful the marketplace successful China," Harald Wilhelm, CFO of Mercedes-Benz radical told CNBC's Julianna Tatelbaum successful effect to a question connected Tesla slashing prices.

"We are not shooting for the mass, we are shooting for the apical end, for the luxury segment, and this 1 usually proves to beryllium much resilient besides successful times of macro uncertainties oregon troughs."

China is the largest marketplace for Mercedes-Benz. The German car radical sold 222,641 cars successful the state successful the 3rd 4th of this year, up from 132,579 units successful the aforesaid play past year.

The CFO's comments travel aft Tesla connected Monday slashed the terms of its Model 3 and Model Y vehicles successful China, 1 of the company's astir captious markets.

That was aft Elon Musk's institution raised the prices of its vehicles earlier this twelvemonth arsenic a effect of rising earthy worldly costs.

Tesla did not springiness a crushed for the terms cuts. But the Chinese economy, which did spot a bump successful the 3rd quarter, is inactive facing a fig of challenges including the country's strict Covid containment argumentation which has weighed connected user appetite.

Tesla's terms chopped comes arsenic contention ramps up in China from home electrical car firms specified arsenic Warren Buffett-backed BYD as good arsenic upstarts Nio and Xpeng.

While Mercedes-Benz inactive relies heavy connected income of accepted combustion motor cars, it is ramping up its electrical conveyance capabilities, which is apt to enactment it successful much nonstop contention with Tesla. In the 3rd quarter, Mercedes-Benz sold 84,850 electrical vehicles, up 39% year-on-year. But they inactive lone relationship for astir 16% of the company's full volume.

Mercedes-Benz's Wilhelm besides addressed the proviso concatenation issues that person been plaguing automakers, successful peculiar a shortage of cardinal semiconductors.

Wilhelm said the proviso concatenation concern has "improved" but helium remains "cautious," saying that request is "being constrained by supply" — of semiconductors successful particular.

He said that immoderate of these issues volition stay successful 2023.

Mercedes-Benz reported third-quarter net of 5.2 cardinal euros ($5.18 billion), up 83% year-on-year.