Mercedes-Benz has reported a 3% drop in global car sales in 2024, citing weak demand in key markets like China and Europe. The German luxury automaker sold 1.9 million vehicles during the year, compared to about 2.1 million in 2023.
China, its largest market, saw a 7% decline, while European sales slipped by 3%. Battery-electric vehicle (BEV) sales suffered a steep 23% drop, with just 185,100 units sold, potentially complicating the companyโs compliance with stricter EU CO2 emission targets introduced this year.
Stifel analyst Daniel Schwarz noted, โThe decline highlights challenges in core markets, but the luxury segment performed better, offering some relief.โ Mercedesโ top-end vehicle sales rose 34% in the fourth quarter, helping boost overall sales for the period by 3%.
Despite these setbacks, Mercedes shares rose 4% on Friday, reflecting investor optimism in the companyโs luxury product mix and ongoing cost-cutting measures. However, the automaker has adjusted its mid-term profitability targets downward, citing continued economic uncertainty.
The company has pledged to intensify cost-cutting efforts after revising its profit margin targets twice in 2024. Mercedes-Benz will reveal its full-year financial results on February 20, 2025, shedding more light on its recovery strategy amid challenging global market conditions.
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