Mercedes-Benz faced a challenging year in 2024, with battery-electric vehicle (BEV) sales dropping 23 percent to 185,100 units amid overall declining core car sales.
The decline in BEV sales adds pressure on the company as stricter EU CO2 emission reduction targets come into effect, potentially leading to costly compliance measures.
Mercedes-Benz also struggled with weaker demand in key markets, cutting its profit margin target twice and signaling further cost-cutting plans while preparing to revise its mid-term profitability targets due to unfavorable market conditions, Reuters news report said.
Mercedes-Benz’s core car sales dropped 3 percent in 2024, totaling 1,983,400 vehicles, impacted by a 7 percent decline in China and a 3 percent drop in Europe.
The automaker cut its profit margin target twice during the year and announced plans to accelerate cost reductions, citing a weak Chinese market as a major factor in declining profits and margins.
Mercedes is preparing to lower mid-term profitability targets due to persistently difficult market conditions, with full-year financial results expected on February 20.
Baburajan Kizhakedath