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Mercedes-Benz Group AG car sales dipped last year as the German luxury-auto maker struggled with weak demand for pricey models in China and electric vehicles in Europe.
The 3% decline to 1.98 million vehicles was led by a slump in deliveries in China, its largest market, where consumers are shunning models like the S-Class and Maybach in favor of local brands. Sales in the country dropped 7% to 683,600 cars from a year earlier, Mercedes said Friday.
Mercedes shares — which were down before the figures were released — gained as much as 1.4% after showing solid sales for the fourth quarter.
Germany’s automakers are struggling in the world’s biggest auto market, where local manufacturers led by BYD Co. are taking over. They’re 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 AG and Porsche’s parent Volkswagen AG.
Sales of top-end cars like the S-Class and Maybach sedans and sport utility vehicles fell 14% 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.
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.
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% to 324,500 units.
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