• ‘We have to improve if we are going to have a shot at winning this title’ • British driver goes into Azerbaijan Grand Prix after flawless race in Canada

Lewis Hamilton has said he and his Mercedes team need to be more consistent to challenge Ferrari for the Formula One world championship. The British driver goes into the Azerbaijan Grand Prix on Sunday after a flawless win, from pole to flag, at the last round in Canada but warned that despite that performance he still believes Sebastian Vettel and Ferrari remain the front runners in a tight battle.

“Consistency is the key to winning the championship,” Hamilton, 32, said on Thursday. “Up until now, Sebastian has had the consistency of a winning championship, so we have to improve if we are going to have a shot at winning this title.”

Hamilton trails Vettel by 12 points in the drivers’ championship, although both have three wins apiece. He had struggled in Monaco, unable to find the correct setup and balance for his car while having difficulty putting his tyres in their correct temperature-operating window.

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He and the team addressed the problems with intent before Canada and the work paid off. The Englishman was hooked up from the off and went on to take a fourth career grand slam of pole, leading for every lap of the race and setting the fastest lap in Montreal. It is the second time he has done so this season, proving that when the Mercedes, described by the team as a bit of “diva”, is on form it is as formidable as it has been in the previous three seasons of dominance.

They are optimistic that they can repeat the performance in Baku but Hamilton was taking nothing for granted. In reference to Ferrari he said: “They have had a more consistent season so far. We’ve had more of an up-and-down season. I think they still are favourites in terms of the fact their car seems to work everywhere. But I think there’s more unlocked potential in our car.”

With new regulations this season the teams are still working on their vehicles to better understand and develop them and Hamilton believes there is more to come. “I’m hoping by August, coming into September, by then we are the favourites.”There is unfinished business in Baku for the British driver. This is the only track on the current calendar at which he has not won. Last year on F1’s first visit to the street circuit he had a troublesome weekend. He was quick in qualifying but hit the wall at turn 11 in Q3 and had to start from 10th from which he could only recover to fifth after also struggling with an engine mode issue. His team-mate Nico Rosberg went on to win untroubled at the front from pole.

“I looked through what I went through last year here and know where all the pitfalls and the issues I had then and don’t plan on having the same issues this weekend,” he said. “But it’s a new year, a new day, I am sure there will be other scenarios this weekend. I feel 12 months later we are better prepared than we were then.”

The team’s executive director, Toto Wolff, said at the FIA conference in Geneva in Tuesday: “We know exactly what happened last year in Baku.” Hamilton was a the factory in Brackley on Monday preparing for the race with the team and Wolff was confident his driver had no issues with the circuit heading into this weekend.

Vettel recovered well in Canada to take fourth after taking damage on the opening lap and was second in Baku last year but expects better this weekend. The German was happy with how his team were maintaining their development pace with Mercedes.

“So far this season is really, really good for us. Let’s not forget that Mercedes blew everyone away the last few years,” he said. “This year it’s a match, and it’s more credit to us that we can go with their pace so far. We’ll see how it pans out in the later part of the season, but it’s crucial to keep the development rate up.”

McLaren’s engine woes continued with Fernando Alonso and Stoffel Vandoorne both taking new parts that incur penalties that will put them to the back of the grid in Baku. The team are in the process of attempting to renegotiate their deal with Honda and Mercedes are the most likely engine supplier to replace them. Hamilton, who won McLaren’s last title in 2008, was keen that they should come to an agreement.

“McLaren belong at the front with the top teams,” he said. “They have had a disaster of a time over the past few years. They are having a struggle right now, and it doesn’t look like it will change any time soon. I hope they get either our engine or Ferrari’s engine next year so they can be up there with the top teams.”