By Dominic Chopping


Mercedes-Benz car sales fell 3% to 1.98 million vehicles in 2024 amid a challenging global market, with top-end vehicle sales weighed by market conditions in China, model changes and weak electric-vehicle demand.

European automakers have faced intense competition with local manufacturers in China in addition to lackluster demand for electric vehicles, while an economic slowdown and property market slump have also seen Chinese buyers shy away from buying high-end cars.

Mercedes has vowed to step up efforts to cut costs and improve efficiency across the business as it seeks to counter softer pricing and lower sales of its higher-margin cars by reducing its cost base.

It had already guided for 2024 car sales to come in slightly below the 2023 level but had said it expected sales in the final quarter of 2024 to come in at a similar level to the third quarter thanks to new combustion engine models and electric versions of its G-Class.

Its sales report released Friday showed car sales rose 3% in the fourth quarter from the third.

"We finished the year with a strong sales quarter, especially with our top-end vehicles and the G-Class in particular," said Britta Seeger, member of the board of management of Mercedes-Benz Group Marketing & Sales.

By region, car sales in its largest market of China fell 7% in 2024 while sales fell 3% in Europe as its top-end vehicles and entry-level models both saw double-digit percentage sales falls.

The German luxury automaker said battery-electric car sales fell 23% in 2024.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

01-10-25 0503ET