Mercedes-Benz Reports Decline in Profit and Sales
Mercedes-Benz, a German automotive company, has reported a significant decline in its profit and sales, largely due to a market downturn in China and a weakness in the European market. The company’s operating result decreased by nearly a third to 13.6 billion euros, as announced by the Dax-listed company. The sales volume dropped by four percent, resulting in a 4.5 percent decline in revenue to 145.6 billion euros.
In China, the company’s most important market, where it previously generated a third of its revenue, the deliveries of vehicles decreased by seven percent. Mercedes-Benz faces increasing competition from local manufacturers such as BYD in this market. Additionally, the company’s electric vehicle business worldwide declined, particularly in Germany, with the global sales volume dropping by nearly a quarter.
The company expects the situation to remain challenging in the current year, with sales and revenue likely to be slightly lower than in 2024. The conglomerate’s result is expected to decline by more than 15 percent, a decline of over 15 percent. Mercedes-Benz Cars is projected to achieve a margin of between six and eight percent in 2025.
The outlook for this year is gloomy not only due to the weak automotive market and the looming import tariffs in the US, but also because the company is introducing only a few new models.