Mercedes-Benz sells/earns less in Q2 2024

In the second quarter (Q2) of 2024, Mercedes-Benz Group sold 496,700 vehicles, 3.7% less than in the same period last year. The company blames decreased demand for electric vehicles and reduced sales in China for this decrease.

Mercedes’s revenue decreased from €38.24 billion to €36.74 billion (-3.9%) in the same period. Earnings before Interest and taxes (EBIT) decreased by 19.1%, and net profit went from €3.64 billion to €3.06 billion (-15.9%). The operational margin dropped from 13.5% to 10.2%.

The reduced sales figures are largely due to the regress of electric sales. The sales of electrified vehicles in general (xEVs in Mercedes language) decreased by 6.2%, and those of BEVs shrunk by a quarter (-25.1%). Fortunately, the sales of PHEVs increased by 27%. Still, the final result is that the share of xEVs in the total sales has diminished from 18.6% to 18.1%.

Hope for the future

Nevertheless, the Stuttgart-based company expects sales to recover in the second part of the year. “Thanks to our desirable passenger cars and vans, Mercedes-Benz achieved double-digit margins in a challenging environment. Going forward, we continue to invest in cutting-edge products while fostering our financial resilience,” commented Ola Källenius, CEO of Mercedes-Benz Group AG.

“Sales and the model mix are expected to improve in the second half of the year, supported by further market launches of new models, particularly in the Top-End segment, he added.

Recently, Mercedes-Benz has rescaled its electrification path and wants to sell more ICE and hybrid cars in the lucrative high-end market. Nevertheless, the investments in electrification continue, but with a more restrained perspective on EV sales in the near future.

New EV models needed

Compared to its biggest German competitor, BMW, Mercedes has failed to deliver enough new and attractive BEV models lately. Add to that a Chinese market where competition has never been so high and the (temporary?) dislike of the German consumer toward electric vehicles, and it’s clear that they will have to gear up again in Stuttgart.

According to Mercedes-Benz, the key to success will be increasing sales of luxury cars with a high profit margin and launching a completely new electric model generation, starting with the CLA, with the production model arriving in 2025.