Mercedes-Benz reported that its core vehicle sales declined throughout the year 2024. This reflects a difficult auto industry in which demand was weakened by a weak global economy and in particular, in China.
The carmaker is under pressure as it navigates an economic environment that’s difficult. This decline in sales coupled with the disappointing numbers for electric vehicles puts them at a disadvantage.
Sales decline across key markets
Sales of 1,983,400 vehicles were down 3% compared with 2023. A 7% decline in China, and a 3 % drop in Europe, had a significant impact on sales.
Mercedes’ sales have fallen in both of its major regions.
Sales of battery-electric vehicles (BEVs) by the automaker fell 23%, to 185.100 units, adding further pressure on its performance.
Mercedes could face substantial fines or costly pooling agreements if BEV sales do not increase.
Market outlook dims as profit targets are lowered
Mercedes-Benz has cut twice its 2024 profit target for the full year and said that it would intensify further cost-cutting efforts. Mercedes-Benz joins an increasing number of European competitors who cite a shrinking Chinese auto market as the main reason for lower profits and margins.
Reuters reported Tuesday that Mercedes plans to also lower its midterm profit targets as the market is not expected to significantly improve in the near term, according to a person familiar with the issue.
Awaiting full-year financial reports
On February 20, the carmaker will report the full year 2024 financial result. At that time, the challenges of this particular year should be clearer.
Investors, analysts and other industry observers will closely monitor these results as they give a complete overview of the automaker’s performance and financial outlook in 2024, including the impact that recent changes on the market may have on the company’s future strategy.
As new information becomes available, the post Mercedes-Benz sales will decline by 2024 amid challenging market conditions could be updated.
