Mercedes team boss Toto Wolff has warned his squad that it must not get carried away by its strong display during qualifying in Melbourne.
George Russell and Lewis Hamilton ended the session in second and third respectively, behind pole-sitter Max Verstappen.
Mercedes has struggled at the start of the 2023 campaign with its lacklustre form from last year carrying over.
Wolff issued after qualifying in Bahrain that its car concept would not deliver a return to the front of the grid, after which the team promised “visible changes” for upcoming events.
But Melbourne’s qualifying outing marked Mercedes’ strongest showing in 2023 to date as it out-paced Ferrari and the heavily improved Aston Martin team.
When asked if a change of car concept was no longer necessary, Wolff said: “I think we need to be careful not to oscillate between mania and depression, but keep the thinking rational.
“What we have seen today is that there is a lot of potential to be unlocked within the car, that’s clear.
“We need to take the right decisions for the long-term and in that respect we will continue to race the best possible package that we have and whether that has a narrow body or wide body is irrelevant, we just need more downforce in the sweet spot of the car.”
Mercedes took a race win at the Brazilian Grand Prix last year, which was its only victory of the 2022 campaign.
So far in 2023, Red Bull has dominated proceedings and eased to wins at the first two rounds in Bahrain and Saudi Arabia.
Despite its strong starting position, Wolff says that it is unlikely that it will be able to challenge for the race win on Sunday.
“I haven’t spoken to the drivers yet, but we were within two tenths and the laps weren’t completely clean – George’s first one and then Lewis’ second one,” Wolff said.
“I think at the moment we are not competing for a race victory or we haven’t been able to compete for a race victory, and even more for a World Championship.
“So you have to take it step by step and it’s great that they have this drive and, whatever the car is capable of giving them, to say pole would have been on – that’s the mindset in the right place.”