German luxury automaker Mercedes-Benz Group’s sales declined in 2024, led by a slowdown in China and Europe during a tough year for the auto industry.
Mercedes-Benz 2024 sales
Mercedes-Benz Group sold 2.38 million units during 2024, marking a 4% decline compared to the prior year, according to preliminary data issued Friday. Of the total, battery electric vehicle (BEV) sales dipped 22% to 204,600 units.
The group’s car sales fell 3% to 1.98 million units, with the top-end and entry segments declining 14% each, with 281,500 and 534,800 units sold, respectively. In contrast, the core segment reported a 6% rise compared to the prior year, selling 1.16 million units.
Car sales witnessed the biggest 7% decline in China to 683,600 units, followed by a 3% drop in European sales to 641,800 units, led by a 9% drop in Germany. North America witnessed an 8% rise to 365,400 units, led by a 9% increase in the US, while the rest of the world recorded a 4% growth to 84,100 units.
Despite the overall contraction, Mercedes-Benz stock rose 3.86% to $56.6 (€55.1) per share as of 6:09 pm AST Arabia Friday. The company has a market capitalization of $52.4 billion (€51.09 billion).
Van sales
Mercedes-Benz Vans sales stood at 405,600 units in 2024, reporting a year-on-year decline of 9%. The eVans accounted for 19,500 units of the total, declining 14% compared to the prior year.
Commercial vans declined 10% to 343,700 units, of which midsize vans reported the biggest decline at 15%, followed by large vans at 8%, and small vans down 3%. Private van sales dipped 8% to 61,900 units, led by a significant 31% dip in small vans and a 5% fall in midsize vans.
North America reported the biggest 31% decline in van sales to 59,900 units, led by a 34% plunge in the US. Asia witnessed a 20% dip to 34,000 units, led by China, while Europe witnessed a 3% fall to 271,500 units, led by a 9% contraction in Germany.
Q4 recovery
During the fourth quarter of 2024, group sales improved 5% compared to the prior quarter, with BEV sales up 20%. Car sales were up 3%, led by a 34% quarter-on-quarter rise in the top-end segment and a 2% increase in the core segment. The entry segment dipped 8%. Vans sales also rebounded, rising 16%, led by a 59% increase in eVans sales.
Lower profit margins
Mercedes slashed its full-year profit margin target twice during the third quarter of last year while announcing an increase in cost cuts, joining other European carmakers that have reported declines in profits and margins due to a weakening Chinese car market.
The company is planning to reduce mid-term profitability targets for its passenger car business by February 20, amid a continuing weak market and the global focus on electric cars, Reuters reported earlier this week, citing a source familiar with the matter.
What to watch for
The carmaker’s full-year financial results for 2024 are scheduled to be released on February 20, 2025.
