Mercedes-Benz Group Q3 sales fall as automaker signals weak demand in China By Investing.com

Investing.com — Germany’s Mercedes Benz Group ( ETR: ) reported a decline in third-quarter sales, hurt by weak economic conditions in China and a “changed” market for battery electric vehicles (EVs).

Groupwide sales — which include both passenger cars and vans — during the period fell 3 percent from a year earlier to 594,600, Mercedes-Benz ( OTC: ) said Thursday. Compared to the previous quarter, the figure decreased by 1%. EV battery sales also fell 31% from a year ago to 46,900.

“Several demand, primarily from Asia, impacted overall sales,” the company said in a statement.

In China, the world’s largest auto market, car sales reached 170,700, down 13 percent. Mercedes-Benz’s van unit “also faced a softening environment in the third quarter” in the country, the company said.

Mercedes-Benz, along with rivals such as Volkswagen (ETR: ) and BMW (ETR: ), all previously cut their full-year performance outlook due to the slowdown in China.

Mercedes-Benz, in particular, cut its guidance for the second time in three months in September, with the company now expecting the group’s annual earnings before interest and taxes to be well below last year’s 19.7 billion euro. He had previously forecast a slight decline.

The group’s underlying earnings are now seen at 15.83 billion euros, according to LSEG estimates cited by Reuters.

Adjusted return on sales from Mercedes-Benz passenger cars is tipped at 7.5% to 8.5% in 2024, up from a previous estimate of 10% to 11%. This would imply an expected adjusted return on sales of around 6% in the second half of 2024.

Chief executive Ola Kaellenius told investors last month that he was unsure how long his underperformance in China would last, warning that he “remains cautious for the foreseeable future”.

Demand from China, a key destination for Germany’s export-oriented economy, has struggled under the weight of disappointing economic growth recently and a severe housing crisis.

(Reuters contributed reporting.)