German giant Mercedes-Benz sees 4% drop in vehicle sales for 2024

German automaker Mercedes-Benz Group’s vehicle sales fell by 4% in 2024 compared to the previous year, dropping to 2.389 million units amid the global slowdown in the automotive industry.

Sales of Mercedes-Benz-branded vehicles alone declined by 3% year-on-year, totaling 1.983 million, according to the company’s written statement released on Friday. However, the company’s vehicle sales recorded its best quarter of the year during the October to December period, boosted by a recovery in China, which rose by 5% compared to the same period in 2023, signaling a growth potential for 2025.

“In 2024, Mercedes-Benz once again demonstrated the power of our brand and the depth of our broad product offering. This culminated in strong sales of our Top-End and Core vehicles in the fourth quarter,” Ola Kallenius, Chairman of the Board of Management of Mercedes-Benz Group evaluated the vehicle sales during the fourth quarter of 2024.

CO2 emissions targets put pressure on Mercedes

The company’s van sales decreased by 9% during the same period, reaching 405,600 units.

Sales of battery electric vehicles (BEVs) also dropped by 22% last year, falling to 204,600 units. Annual sales of electric cars declined by 23%, totaling 185,100 vehicles.

This year, the European Union’s stricter CO2 emissions reduction targets have placed additional pressure on the automaker. If electric vehicle sales fail to grow, Mercedes could face costly compliance agreements or hefty fines.

Mercedes automotive sales across global markets

Sales in Mercedes’ largest market, China, dropped by 7% in 2023 to 683,600 units. European sales declined by 3%, falling to 641,800 units. In the United States, however, sales rose by 9%, reaching 324,500 vehicles.

The company’s fourth-quarter sales for 2024, boosted by a recovery in China, rose by 5% compared to the same period in 2023, climbing to 625,800 units.