BERLIN (Reuters) – Mercedes-Benz expects raw material prices and semiconductor shortages to continue to prevent it from meeting strong market demand for its products this year, the carmaker’s Chief Financial Officer Harald Wilhelm said on Friday.

Chip capacity is coming back up, and the shortage will ease in the second half, he told analysts on a conference call after Mercedes-Benz released preliminary 2021 results. A “good part” of raw material costs are already locked in, he said.

“It is matter of fact that there will be a [raw] material headwind, so I think we will need the volume lever to mitigate and fight it,” Wilhelm said. “We will try and see what can still be done on top of 2021 in terms of the pricing, but the pricing itself will not be enough.”

(Reporting by Victoria Waldersee; Editing by Maria Sheahan)