They sold 1,983,400 vehicles throughout the year, which is a 3% decrease compared to 2023, with a notable 7% drop in China and a 3% decline in Europe.
Sales of battery-electric vehicles (BEVs) also took a hit, plummeting by 23% to 185,100 units. This puts extra pressure on the company as new, stricter EU CO2 emission reduction targets kick in this year, which could lead to expensive pooling agreements or significant fines for Mercedes if BEV sales don’t rebound.
In response, the automaker has revised its full-year profit margin target downwards twice in 2024 and plans to ramp up cost-cutting measures, joining other European competitors who are also citing a weakening Chinese car market as a reason for their declining profits and margins.
Additionally, Mercedes is looking to adjust its mid-term profitability goals, as market conditions are expected to remain tough, according to a source familiar with the situation who spoke to Reuters on Tuesday. The company is set to announce its full-year 2024 financial results on February 20.