In 2024, the automotive market faced a challenging year, with Mercedes-Benz Cars experiencing a decline in unit sales despite the full availability of new models and an increase in Top-End Vehicle sales. The economic situation and automotive markets remained uncertain, with unexpected macroeconomic developments and geopolitical events impacting the global economy and business development of Mercedes-Benz Group. In this article, we will delve into the factors contributing to the decline in Mercedes-Benz's 2024 car sales and the challenges faced by the company and other automakers in the market.

Factors Contributing to the Decline in Mercedes-Benz's 2024 Car Sales

1. Macroeconomic Uncertainties: The economic situation and automotive markets were characterized by a degree of uncertainty, with unexpected macroeconomic developments and geopolitical events impacting the global economy and business development of Mercedes-Benz Group (Source: Date Time: 2025-01-10).
2. Fierce Competition: In China, Mercedes-Benz faced fierce competition in the Entry segment and to a certain extent in the Core segment, which contributed to a cautious view on the macroeconomic sentiment in that market (Source: Date Time: 2025-01-10).
3. Product Transitions: The company was undergoing product transitions, which led to a less favorable sales mix and softer net pricing in the third quarter of 2024. For example, the all-new ICE and BEV versions of the G-Class were available in major markets only in the fourth quarter (Source: October 25, 2024 – Mercedes-Benz Group AG generated solid sales in the third quarter despite product transitions).
4. Market Environment: The challenging market environment and higher interest rates for a longer period contributed to the decline in sales, particularly for Mercedes-Benz Mobility, which expected an adjusted Return on Equity (RoE) of 8.5% - 9.5% for the full year (Source: Date Time: 2025-01-10).
5. Market Demand Softening: In the second half of 2024, market demand was expected to soften in the private and commercial van segments, which affected the sales of Mercedes-Benz Vans (Source: Date Time: 2025-01-10).

These factors combined led to a decline in Mercedes-Benz's 2024 car sales, with adjusted earnings before interest and taxes (EBIT) for Mercedes-Benz Cars at €1.2 billion in the third quarter, compared to €3.4 billion in the same period the previous year (Source: October 25, 2024 – Mercedes-Benz Group AG generated solid sales in the third quarter despite product transitions).

Challenges Faced by Other Automakers in 2024

In 2024, other automakers also faced challenges in the EV market. BMW, for example, faced criticism for high prices and design flaws in its EV lineup, leading to a 9% drop in battery vehicle sales in the first quarter to 50,500 units, compared to Mercedes-Benz's 82,700 vehicles. The EQS, launched in 2021, underperformed with poor sales and design issues that deterred customers, particularly in China. This led Mercedes to revise its target from exclusively selling EVs by 2030 to achieving around 50% EV sales by then.

Geopolitical tensions also added to the challenges of the shift to EVs. The European Union planned to impose tariffs on China-made electric cars, potentially affecting Smart models produced in China through Mercedes' partnership with Zhejiang Geely Holding Group Co. Källenius cautioned against triggering a trade conflict, noting the significant scale of imports from China to Europe.

In summary, the overall automotive market in 2024 faced challenges such as fierce competition, geopolitical tensions, and slowing EV demand. Automakers like Mercedes-Benz and BMW had to adapt their strategies to effectively navigate the evolving automotive landscape and meet customer demands.



As investors, it is crucial to stay informed about the market conditions and the performance of companies in the automotive industry. By understanding the factors contributing to the decline in Mercedes-Benz's 2024 car sales and the challenges faced by other automakers, we can make more informed investment decisions. Keep an eye on the developments in the automotive market and the strategies employed by companies to adapt to the changing landscape.