Mercedes-Benz Car Sales Fell 3% in 2024 Amid Challenging Market -- Update

In 2024, Mercedes-Benz, the luxury car giant, faced a challenging market landscape that led to a 3% decline in its car sales. The company, which had previously guided for sales to be slightly below the 2023 level, reported a total of 1,983,400 vehicles sold last year. Despite the decline, Mercedes-Benz managed to post a strong fourth quarter, with sales rising 3% compared to the third quarter.

The sales decline can be attributed to several factors, including market conditions in China, model changes, and weak electric vehicle demand. In China, the company faced intense competition with local manufacturers and a lackluster demand for electric vehicles. Additionally, an economic slowdown and property market slump led Chinese buyers to shy away from purchasing high-end cars. As a result, sales in China fell by 7% in 2024.

In Europe, sales fell by 3% as both top-end vehicles and entry-level models experienced double-digit percentage sales falls. The decline in sales can be attributed to fierce competition in the market and a cautious view on the macroeconomic sentiment in the region. Despite the sales decline, Mercedes-Benz expects the overall sentiment in Europe to improve.

Battery-electric car sales also contributed to the overall sales decline, falling 23% in 2024. The company sold 185,100 electric vehicles last year, reflecting the challenges it faces in the electric vehicle market. Mercedes-Benz has lagged behind rivals like BMW in the electric vehicle market, with its initial electric vehicle offerings facing criticism for high prices and design flaws.

Despite the sales decline, Mercedes-Benz remains committed to its strategic focus on luxury vehicles and electric mobility. The company aims to grow the sales share of its Top-End vehicles by around 60% by 2026 versus 2019 and intends to achieve higher quality growth and a further significant increase in profitability and resilience, striving for an operating margin target of approximately 14% by mid of the decade in favorable market conditions.

In conclusion, the 3% decline in Mercedes-Benz car sales in 2024 reflects the challenges faced by the company in adapting to changing market conditions and competition in key markets like China and Europe. Despite the sales decline, Mercedes-Benz remains committed to its strategic focus on luxury vehicles and electric mobility, aiming to achieve higher profitability and resilience in the future.