Mercedes-Benz Expects Lower Profits Due To Disappointing Sales Of EVs

Mercedes-Benz warns that profits will be hit this year by falling demand for electric cars. The group is also suffering from a cooling economy. As a result, it expects its profit margin to drop to 10 percent in 2024 from 12.6 percent last year. In addition, the car manufacturer lowered its expectations for sales of fully electric cars.

“The economic situation and the automotive markets are still characterized by an exceptional degree of uncertainty,” the Germans concluded. It also warns of the risk of further supply chain disruptions. Currently, car manufacturers are also holding their breath for the unrest in the Red Sea. This has already led to some manufacturers having to reduce production.

To boost profits, Mercedes-Benz hopes to sell more cars in the top segment, such as the S-class and GLS. In October, the manufacturer warned that margins were declining due to higher costs and lower average car prices. That is why the brand wants to focus more on cars with a higher margin.

• Also See: Mercedes-Benz Group Delivered 2.4 Million Cars In 2023, Mercedes-Maybach Sales Rose By 19%