(Reuters) – Mercedes-Benz’s ( OTC: ) core car sales fell in 2024, a tough year for the auto industry marked by declining demand in a weak economy, particularly in key market China, the German luxury carmaker said on Friday.
It sold 1,983,400 cars for the year, down 3% from 2023, weighed down by a 7% drop in China and a 3% drop in Europe.
Annual sales of battery electric cars (BEVs) fell 23% to 185,100 vehicles, putting further pressure on the carmaker as new, tougher EU targets to cut CO2 emissions come into effect this year, potentially meaning expensive contracts on mergers or hefty fines for Mercedes if BEV sales do not grow.
The carmaker cut its full-year profit target twice in 2024 and said it would step up cost-cutting, joining a growing number of European rivals blaming a weakening Chinese auto market for falling profits and margins.
Mercedes also plans to lower its medium-term profitability targets because market conditions are unlikely to improve in the near term, a source familiar with the matter told Reuters on Tuesday.
The automaker is scheduled to report full-year 2024 financial results on February 20.
