Lewis Hamilton believes the growing threat of Max Verstappen and Red Bull will only help Mercedes improve further.
Mercedes occupy the top two spots in the Formula 1® driver standings, with Hamilton 41 points ahead of team-mate Valtteri Bottas.
Hamilton has won four of the last five championships, with Mercedes having reigned as the best constructor since 2014.
Verstappen, who on Thursday claimed Red Bull are still far behind the F1® champions, sits in third, 22 points behind Bottas, having won two of the last three races – including Mercedes' home grand prix in Germany last time out.
And Hamilton has welcomed Red Bull's improved form, insisting it can only aid Mercedes in their quest to keep on getting better.
"[Red Bull] have clearly done a great job in quite a few of the races now," Hamilton said ahead of the Hungarian Grand Prix.
"In the last one, we didn't do very well, we did a pretty bad job, so it made their job look even better.
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"Nonetheless, we've just got to continue focusing on ourselves, not get distracted by focusing on others.
"They will be pretty quick here and there will be places like Singapore where they'll probably be pretty strong. But they are in general, collectively, slowly catching up.
"I'd say it's easier to catch up than be the leader, in many aspects. But it's great to see them progressing, we want the competition. We want to be ready for the fight."