Daimler AG share price flat, Mercedes-Benz posts strongest first half on record as sales in Asia surge

Stuttgart, Germany-based premium car maker Mercedes-Benz posted its strongest first half on record as global first-half sales jumped by 13% on the back of strong demand in Asian markets and modest growth in the U.S.

Mercedes-Benz, which is a unit of automotive group Daimler AG, reported that it sold 783 520 cars worldwide in the first half, while sales in June marked an 8% jump to 142 136 vehicles.

The upbeat performance was largely on the back of continuously rising demand in China and other Asian markets, signifying the regions role as a main driver for growth in the premium segment.

The companys sales in China rose by 20% in June and soared by 38% in the six months through June to 135 972, which accounted for 17% of global deliveries. In Japan, sales surged by 13% in the first six months to 27 306 cars, despite declining by 26.7% in June. The Asian-Pacific region as a whole accounted for the delivery of 232 294 units in the first half, marking a growth of 30.5%.

Sales in the US, the companys single biggest market, gained 8.6% in June. Between January and June, they increased by almost 7% to 151 624 vehicles. In Mercedes-Benzs home market, Germany, growth was minor as sales rose by only 0.7% in the first half to 125 215 cars, while contracting by 7.9% in June.

In the U.K., deliveries surged by 17.8% in the first half and posted a rise 7.7% in Switzerland. Overall in Europe, sales jumped by 7.4% to 352 198 units.

Ola Källenius, chief of sales department, commented on the report: “The first half of the year was extremely successful for us. With the unit sales of our vehicles, we are on track to make 2014 into yet another record year.”

Mercedes also reported that global deliveries of its flagship S-class sedan doubled to 49 262 units in the six months through June. Sales of the companys A-Class, B-Class and CLA compact cars increased by 24.1% during the same period. Moreover, the companys performance is expected to receive a further boost as it will unveil the new Mercedes-Benz C-Class, its best selling model, in China and North America in September.

Daimler AG closed unchanged at 70.44 euros on Friday in Frankfurt, marking a one-year change of +43.52%. The company is valued at 75.36 billion euros. According to the Financial Times, the 31 analysts offering 12-month price targets for Daimler AG have a median target of 76.00 euros, with a high estimate of 86.00 euros and a low estimate of 60.00 euros. The median estimate represents a 7.89% increase from the last price of 70.44 euros.