Mercedes-Benz electric car sales plunge by a third as Chinese competition and stuttering demand hit home
Benjamin Zhang/Business Insider
- Europe's automakers are reeling from plunging EV sales and brutal competition in China.
- Mercedes-Benz became the latest to sound the alarm on Friday, posting a 31% drop in EV sales in its Q3 earnings.
- The luxury automaker has also seen sales drop in China amid weak demand for premium cars.
Europe's automakers are struggling amid falling demand and increased competition from China, with Mercedes-Benz the latest to sound the alarm over plunging EV sales.
The German carmaker said it had seen a 31% drop in sales of battery-powered cars from a year earlier as it reported its third-quarter earnings on Friday.
Sales of all Mercedes cars in China also slumped by 10% in the first nine months of the year amid waning demand for luxury vehicles.
Mercedes finance chief Harald Wilhelm said the company would pursue "cost improvements" across its business, with Mercedes' return on sales sliding to 4.7% in Q3.
The premium automaker is the latest European car giant to run into trouble as the continent struggles with lackluster EV sales.
Rivals VW, BMW, and Fiat parent Stellantis have all issued profit warnings in recent weeks, as the European auto industry faces weak demand and competition from Chinese upstarts at home and abroad.
Registrations of new EVs in August dropped 44% in Europe and a massive 69% in Mercedes' home market of Germany, industry data shows.
Although they recovered slightly in September, sales of new electric vehicles this year still remain nearly 6% lower than at the same point in 2023, according to data from the European Automobile Manufacturers' Association.
In China, meanwhile, European automakers that once dominated are under increasing pressure from local rivals pushing inexpensive EVs.
They now face the prospect of competing with the likes of BYD in Europe, too, with Chinese carmakers expanding product lines and setting up manufacturing plants despite the European Union's mooted tariffs.
Mercedes' weak sales in China are in contrast with General Motors, which this week said that sales in the country were up 14% from the second quarter, although the Detroit automaker still lost $137 million in Q3.
Mercedes did not immediately respond to a request for comment.