Mercedes-Benz Car Sales Drop As China, EV Slump Take Toll

The global recession in the automobile industry caused the German automaker Mercedes-Benz Group's vehicle sales to decline 4% from the year before to 2.389 million units in 2024. The company said in a written statement on Friday that sales of cars bearing the Mercedes-Benz brand alone fell 3% year over year to 1.983 million.
But because of a resurgence in China, the company's car sales saw their highest quarter of the year from October to December, up 5% over the same period in 2023 and suggesting room for development in 2025.

“In 2024, Mercedes-Benz once again demonstrated the power of our brand and the depth of our broad product offering. This culminated in strong sales of our Top-End and Core vehicles in the fourth quarter,” Ola Kallenius, Chairman of the Board of Management of Mercedes-Benz Group evaluated the vehicle sales during the fourth quarter of 2024.

Additionally, during the same time period, the company's van sales dropped by 9% to 405,600 units. Likewise last year's sales of battery electric cars (BEVs) fell by 22% to 204,600 units. Electric car sales fell by 23% annually to 185,100 vehicles.
In 2023, Mercedes' sales in China, its biggest market, fell 7% to 683,600 cars. Sales in Europe dropped to 641,800 units, a 3% decrease. However, sales grew by 9% to 324,500 vehicles in the US. A resurgence in China helped the company's fourth-quarter sales in 2024, which increased by 5% to 625,800 units from the same period in 2023.

In addition to Mercedes-Benz, the first half of 2024 saw a decline in net profit for BMW, Renault, and Volkswagen. The Chinese market, where consumer spending is dropping, presents serious issues for European automakers.

The EU will tighten its carbon emission standards starting this year, which will raise the cost of research and development to meet the new requirements. In July 2024, Mercedes-Benz launched a new EV battery research and development centre that cost hundreds of millions of euros to construct.

With these escalating challenges, European automakers must address rising costs, global competition, and stringent regulations in order to remain competitive in an ever-changing automotive market.