BERLIN (Reuters). Mercedes-Benz presented a new strategy that “creates desire through scarcity” at a French Cote d’Azur strategy day, in which it displayed its luxurious models to investors, analysts and select customers.

According to the German automaker, 75% will be invested in top-end cars and their highest-selling segments of core luxury C-Class, E-Class, and E-Class models. It also reduced entry-level models.

Ola Kaellenius, chief executive of Mercedes-Benz, stated that the current semiconductor shortage has allowed Mercedes-Benz have tested higher prices with customers over the past two years. These higher prices will be maintained even as the shortage decreases.

He stated that although restrictions in semiconductor supply will eventually be removed, he would not change his stance on the discipline.

Mercedes-Benz stated that it plans to exclusively sell electric cars in 2030, if market conditions permit. Kaellenius stated that the volume of EVs will increase in the second decade when there are more models.

We want to be able to serve all of our customers electrically. Kaellenius explained that it doesn’t matter if the number is greater than “5” if it’s 2030 and ‘x ‘….

Mercedes-Benz had previously raised its margin target from 10% to 14% for 2025 under favorable conditions.

The company projected that its top-end models would see a 60% increase in sales from 2019, to 17%-18% by 2026. China is the most promising market for growth.

Harald Wilhelm, chief financial officer, stated that although the company achieved a margin of 16.4% in its cars segment in the first quarter 2022, it still had to achieve its margin goal for 2025, given its need to fund its electrification strategy.

Wilhelm stated that it was important to consider the costs of switching to batteries-electric cars.