Mercedes-Benz recently released its Q1 profit report, and things are looking good for the German brand.

According to Mercedes, the increase in profit results from lowering prices, a sharpened focus on top-end vehicles and premium vans, and ongoing cost discipline.

While the ongoing semiconductor chip shortage and the war in Ukraine continue to impact business, Mercedes-Benz Cars increased profits by 16.4 percent, and Mercedes-Benz Vans shot up by 12.6 percent.

"In this challenging environment, resilience and pricing power are crucial. Our sharpened focus on desirable top-end and electric vehicles, combined with ongoing cost discipline, allowed us to deliver strong earnings despite numerous headwinds," said Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG. "On this foundation we continue to transform our business by growing the luxury business, scaling up production of electric vehicles, and accelerating software development."

Earnings before interest and taxes increased by 11 percent to $5.46 billion, up from $4.93 billion in the first quarter of 2021. The profits were bolstered by a $964 million gain from the sale of Canadian own retail operations and the partial sale of MB Grand Prix.

This nearly offset the $744 million spent on expenses tied to adjustments of industrial business activities in Russia and $295 million in costs related to diesel vehicles.

Following Russia's invasion of Ukraine, Mercedes joined a host of other manufacturers, which suspended the export of passenger cars, vans, and parts to Russia. Manufacturing in Russia remains halted.

Mercedes is currently in close contact with suppliers with ties to Ukraine to safeguard its supply chain. The ongoing discussions include transferring production to other locations in the supplier network. According to Mercedes-Benz, it has adapted shift plans at some plants and taken advantage of its flexible manufacturing system to avoid downtime and maintain production.

The German brand is currently focused on expanding its electric footprint. The Vision EQXX recently drove more than 1,000 kilometers (625 miles) on a single charge. The EQS and EQE were unveiled, and Mercedes opened a new battery plant in the United States earlier this year.

The global push toward EVs will likely see profits continue to grow for the rest of the year.