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Mercedes Profitability to Get Hit by EV Slump, China Plunge

Global sales of top-end models fell 17%, EVs by a quarter
Mercedes has cuts back on electric-car plans on weak demand

WATCH: Mercedes-Benz Group AG’s earnings dropped in the second quarter as sales of its electric vehicles declined sharply and demand in China weakened. Oliver Crook reports.Source: Bloomberg

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By Wilfried Eckl-Dorna

July 26, 2024 at 5:01 AM UTC

Updated on

July 26, 2024 at 8:26 AM UTC

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Mercedes-Benz Group AG trimmed the upper range of a key margin forecast on the back of a subdued outlook and strong competition in China, chiming with other carmaker warnings.

The company now expects returns in a range of 10% to 11% from its core automaking business, after previously saying margins could be as high as 12%. Profit during the second quarter declined sharply as the industry struggles with a slump in EV demand.