How Claudius Steinhoff aims to grow Mercedes SA's share

New Mercedes-Benz SA co-CEO Claudius Steinhoff shared a frank but optimistic view of his tenure ahead at a briefing in Tshwane last week.

Fully aware of the economic challenges and competitive market conditions, he believes the best days are still ahead for the German marque in Mzansi.

Steinhoff, who took over from Mark Raine, has been in the country for five months. His previous post was in Singapore, overseeing the region in addition to other distributor-based operations in Asia, including Indonesia and Philippines. He commented positively on the South African collective spirit and its natural beauty.

Describing himself as a petrolhead at heart, Steinhoff said he fell in love with the Mercedes-Benz brand at a young age, when a family friend took him along to collect their new E-Class from the factory in Stuttgart.

Among the targets ahead for Steinhoff is growing the brand's sales volumes. In January the manufacturer reported 359 new units sold. Direct rival BMW recorded 1,184 vehicles.

Asked about the disparity between the competition, Steinhoff conceded that Mercedes-Benz aimed to achieve better, but added that market share was not the primary driving factor behind its strategy.

He referenced a holistic approach that seeks to satisfy existing Mercedes-Benz customers and impress would-be buyers.

“We will be set apart by creating 'Mercedes moments' at every touchpoint, focusing on customers' individual needs, in addition to creating special offers, ensuring owners have nothing to worry about throughout their vehicle's life cycle,” said Steinhoff.

Globally, Mercedes-Benz sold 2.4m units in 2024, a figure which includes passenger cars and vans.

This year the latest CLA will make its international debut, a crucial model according Steinhoff, which will kick off “the biggest ramp-up of new products that Mercedes-Benz has ever seen”.

In 2024 Mercedes-Benz announced a restructuring at its East London plant, which is responsible for production of the C-Class, including Mercedes-AMG derivatives.

The Section 189 process was anticipated to have affected 700 employees. Steinhoff said the process was concluded successfully, without forceful retrenchments.

“After this process, we are confident we have a powerful set-up for 2025; we are well-positioned within our global network to meet the demand for [the] C-Class.”

He denied speculation that further restructuring lay ahead. “While you see a shift towards SUVs, our C-Class remains a key model. In terms of infrastructure, East London is amazing, with a short distance between the end of the [production line] to the vessel.”

Steinhoff trumpeted significant investments in the plant, including a R100m photovoltaic system, rendering the facility independent from the grid network, and also enabling it to feed energy back into the grid.

From a new models perspective, Mercedes-Benz has at least five high-end models in the wings for the local market. Product specialist Kishan Soma confirmed the imminent arrival of the V8-powered G53, six-cylinder E53, the brutish GT63 SE and open-air SL63.

The brand gave the media a sneak peek at the all-electric G580, with its 360-spin “G-Turn” function. An exclusive reveal of the CLE 53 was also staged.