Mercedes-Benz Group Car Sales Dip Amid Weak Demand
The Mercedes-Benz Group reported a 3 per cent decline in car sales last year, with the company struggling with weak demand for its pricey models in China and electric vehicles in Europe.
Decline in China Sales
The decline in sales was led by a slump in deliveries in China, the company’s largest market, where consumers are shunning models like the S-Class and Maybach in favour of local brands. Sales in the country dropped 7 per cent to 683,600 cars from a year earlier, Mercedes said on Friday (Jan 10).
Global Sales Challenges
Germany’s automakers are struggling in the world’s biggest auto market, where local manufacturers led by BYD are taking over. They are also contending with weak demand for EVs in Europe after several countries reduced subsidies. The issues led to a wave of profit warnings last year, including from Mercedes, BMW and Porsche’s parent Volkswagen.
Impact on Strategy
The decline in sales of top-end cars like the S-Class and Maybach sedans and sport utility vehicles fell 14 per cent in 2024, though deliveries improved in the final three months of the year from the third quarter. The decline undermines the company’s strategy to push further upmarket by selling more of its most luxurious vehicles to boost profit.
Electric Vehicle Sales
Sales of Mercedes’ fully electric cars plunged by nearly a quarter last year, as consumer demand waned in Europe and Chinese manufacturers seized market share in the region. For 2025, Mercedes aims to revive flagging EV sales with its entry-level CLA sedan, which it will launch ahead of the first model from BMW’s Neue Klasse line of plug-in cars.
US Sales
Still, Mercedes’ car sales picked up slightly at the end of last year, with a strong performance in the US. For the whole of 2024, US car sales rose 9 per cent to 324,500 units.
Conclusion
The Mercedes-Benz Group’s car sales decline is a result of weak demand for its pricey models in China and electric vehicles in Europe. The company is struggling to compete with local manufacturers and Chinese manufacturers, which are taking over the market. To revive its sales, Mercedes aims to launch its entry-level CLA sedan and improve its electric vehicle offerings.
FAQs
Q: What was the decline in Mercedes-Benz Group car sales last year?
A: The company reported a 3 per cent decline in car sales last year.
Q: Which market was responsible for the decline in sales?
A: The decline in sales was led by a slump in deliveries in China, the company’s largest market.
Q: What is the reason for the decline in electric vehicle sales?
A: Consumer demand waned in Europe and Chinese manufacturers seized market share in the region.
Q: What is Mercedes-Benz Group’s plan to revive its electric vehicle sales?
A: The company aims to launch its entry-level CLA sedan and improve its electric vehicle offerings.
Q: How did Mercedes-Benz Group’s US sales perform last year?
A: US car sales rose 9 per cent to 324,500 units last year.
