Mercedes-Benz's sales in China market plunge significantly

According to German newspaper Handelsblatt: The luxury car manufacturer Mercedes-Benz has experienced a sharp decline in sales within the Chinese market. Although growth was achieved in the U.S. and European markets, this was insufficient to offset the significant drop in China. However, the development of electric vehicles has given Mercedes-Benz renewed hope.

Mercedes-Benz continues to grapple with persistently declining sales. In the first half of this year, the German DAX-listed company delivered approximately 837,000 vehicles to dealerships, marking a year-on-year decrease of about 7%. The company announced these figures on Wednesday.

The primary reason for the sales decline lies in weak performance in the Chinese market. As Mercedes-Benz’s largest single market, the company delivered only 210,200 vehicles in China this year—down 28% year-on-year. The second quarter saw particularly pronounced declines, mainly due to a substantial contraction in the internal combustion engine (ICE) vehicle market. Rising fuel prices caused by the war in Iran have dampened consumer demand for petrol-powered models.

Although sales grew in two key markets—Europe and the United States—they were not enough to compensate for the massive losses in China. In the first half of the year, Mercedes-Benz's vehicle deliveries in Europe and the U.S. increased by 5% and 15%, respectively.

To reverse the prolonged downward trend in sales over recent years, Mercedes-Benz is launching its largest product offensive in company history. By 2027, the automaker plans to introduce up to 40 new or redesigned models, most of which will be fully electric vehicles.

Currently, the company has begun rolling out the first models under this strategic initiative in Europe. The all-electric versions of the CLA, GLB, and GLC have already started being delivered to dealerships, while the new S-Class is being launched solely in its combustion engine variant—and only in Europe at present. Matthias Geisen, Mercedes-Benz’s Sales Director, stated that this product push is accelerating noticeably. He said: “With the newly launched all-electric C-Class, which began taking pre-orders in May, and the upcoming global debut of the all-electric GLA by end-July, we are actively advancing our product strategy.” As a result, the company is showing stronger optimism for the second half of the year. Additionally, Mercedes-Benz plans to introduce new models specifically developed for Chinese consumers’ preferences, aiming to partially offset the weakness in the local market.

Deliveries of pure electric vehicles continue to grow steadily. Geisen noted that the sales growth of the new generation of electric vehicles is encouraging. “In the second quarter, our electric vehicle sales increased by more than 50%,” he said. This growth is primarily driven by a surge in demand for EVs across Europe, where electric vehicle deliveries rose by approximately 87% year-on-year to reach 43,500 units. Among them, the CLA and GLB models performed particularly strongly. So far this year, electric vehicles accounted for over 11.5% of Mercedes-Benz Group’s total sales volume.

However, for the group and CEO Ola Källenius, the all-electric GLC—the so-called "make-or-break" model internally—is currently facing challenges. As previously reported by Handelsblatt, the production ramp-up for this electric SUV has been progressing slowly. According to insiders within the company, the root cause lies in insufficient supply of critical components, including battery packs.

In contrast, the U.S. market remains predominantly fueled by internal combustion engines. In the first half of this year, Mercedes-Benz delivered 15% more vehicles to U.S. dealerships compared to the same period last year. The most popular models among American consumers remain the company’s so-called "core product series" (Core Segment), including the C-Class, E-Class, and their various derivatives.

Source: rfi

Original article: toutiao.com/article/1870210349985027/

Disclaimer: This article reflects the personal views of the author