Why it matters: Mercedes-Benz, a leader in luxury automobiles, has reported a significant decline in electric vehicle (EV) sales for the third quarter of 2024, raising questions about the company’s electrification strategy and the broader EV market trends.
The numbers tell a story: Mercedes-Benz experienced a sharp downturn in EV sales during Q3 2024:
- Motor1 reports that battery-electric vehicle (BEV) sales dropped 31% to 42,500 units.
- Overall vehicle sales for Mercedes-Benz Cars decreased by 1% to 503,600 units.
- Electric van sales also declined by 31% to 4,400 units.
Contrasting fortunes: While Mercedes-Benz struggled, competitor BMW saw growth in the EV sector:
- BMW Group’s BEV sales increased by 10.1% to 103,440 units in Q3 2024, according to Carscoop.
- For the first nine months of 2024, BMW sold 294,054 BEVs, a 19.1% increase year-over-year.
Regional variations paint a complex picture:
- Mercedes-Benz benefited from stable sales in Europe and 29% growth in the US.
- China proved challenging for both brands, with Mercedes-Benz down 1% and BMW plummeting 29.8% in Q3.
Factors behind the decline: Mercedes-Benz attributes its EV sales drop to:
- A subdued market environment for luxury goods.
- Competitive pricing in key markets.
- The company’s decision not to fully engage in aggressive discounting.
Looking ahead: The current sales trend poses challenges for Mercedes-Benz:
- Meeting CO2 fleet targets for 2025 may be difficult with the current 7.9% BEV sales rate.
- The company may need to reassess its product lineup and marketing strategies to boost EV sales.
As the automotive industry continues its transition to electrification, Mercedes-Benz’s Q3 performance reminds us of the challenges facing even established luxury brands. Industry observers and consumers alike will closely watch the company’s future actions in response to these results.
