FRANKFURT – Mercedes-Benz said on Thursday its operating profits had risen slightly in the first three months of the year as it was able to shake off the impact of high inflation.

The German auto group said it recorded an operating profit of €5.5 billion (S$8 billion) in the first quarter of 2023, up from €5.2 billion in the same period last year.

Higher price tags for the group’s vehicles were able to “overcompensate for the negative effects from higher material costs” amid soaring inflation, Mercedes finance chief Harald Wilhelm said in a statement.

The improvement came mainly from the strong performance of the automaker’s vans division, Mercedes said in the statement.

Mercedes also saw “solid growth rates” in sales of both electric vehicles and its high-margin top-end vehicle range, the group said.

Sales of battery-powered vehicles had “almost doubled” in the first quarter to 51,600 units, representing 10 per cent of the group’s overall sales, Mercedes said in a statement earlier this month.

The strong performance was driven by a 327 per cent increase in electric vehicle sales in the United States, where the government had launched a push to get consumers to buy more battery-powered cars.

Meanwhile, sales of Mercedes’ top-end vehicles rose by 18 per cent year on year in the first quarter, with 91,800 units delivered.

The improved performance comes as supply chain issues, which have dogged the auto industry, appeared to be letting up somewhat.

The group’s full first-quarter results will be published on April 28. AFP