Mercedes-Benz And Volkswagen Profits Plummets Due To Weak EV Demands

The German carmakers Mercedes-Benz and Volkswagen saw the sales figures of their cars—and therefore also their profits—fall sharply in the first three months of the year. According to Mercedes, this is partly due to the ‘moderate demand’ for electric cars. “As expected, the year is starting slowly,” said Volkswagen Group Chief Financial Officer Arno Antlitz.

Both companies saw their net profit decline by more than a fifth. In addition to moderate demand, Volkswagen also points to competition as a reason for the decline. Both companies saw their net profit decline by more than a fifth. In addition to moderate demand, Volkswagen also points to competition as a reason for the decline. At the same time, Mercedes sees that consumers are postponing the purchase of a new car because they are waiting for newer models. The company also cites high inflation and central bank interest rate increases as reasons for declining sales figures.

The Volkswagen Group hopes to turn the tide by launching thirty new models or versions on the market this year for all of the company’s car brands, such as Seat and Audi. Mercedes expects limited growth and thinks that demand for cars will remain weak this year.

While Volkswagen’s car sales are declining on all fronts, the sales figures of the Chinese electric car manufacturers in which the German group invests increased by 6 percent. Sales of Chinese electric car brands in which Volkswagen has an interest account for more than a third of Volkswagen’s total sales figures, and that ratio is increasing. For example, earlier this year, the German car company took a stake of more than €650 million in the Chinese Xpeng, with which it is jointly developing two electric models.

• Also See: Mercedes-Benz EQS Loses Half Of Its Value In The Used Car Market