(Reuters) – Core sales of Mercedes-Benz (OTC:) vehicles fell in 2024, a tough year for the auto industry marked by weaker demand amid a weak economy, especially in the key market of China, the German luxury carmaker said on Friday.
During the year, 1,983,400 vehicles were sold, which is 3% less than in 2023, amid a fall of 7% in China and 3% in Europe.
Annual sales of battery electric vehicles (BEVs) fell 23% to 185,100 vehicles, adding to pressure on the automaker as new, tougher EU targets to cut CO2 emissions come into force this year, potentially meaning costly merger deals or huge fines for Mercedes if BEV sales don’t grow.
The automaker cut annual profit margins twice in 2024 and said it would deepen cost cuts, 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 as market conditions are unlikely to improve in the near future, a source familiar with the matter told Reuters on Tuesday.
The automaker is scheduled to release 2024 financial results on Feb. 20.