Luxury German automaker Mercedes-Benz has seen its profits drop by more than half. The manufacturer blamed a difficult market environment, particularly in its important Chinese market. Mercedes-Benz on Friday said its profits in the third quarter had plummeted by more than 50%, having taken a particularly tough hit from weakness in the key Chinese market.
Germany 's auto giants are facing increasing competition from homegrown carmakers in China as the Chinese economy battles a period of flagging economic growth. China has the second-biggest economy in the world, behind the US. How the figures stack up Net profit stood at €1.
72 billion ($1.86 billion), down from €3.7 billion a year ago as sales slipped almost 7% to €34.
5 billion, the group said. It saw vehicle deliveries dip by 3% overall, pulled down by a 13% fall in China . For the group's most profitable luxury cars, worldwide sales fell by 12%.
Mercedes said it expected annual sales in 2024 to be slightly below the previous year, with the fourth-quarter results expected to be similar to the third. The company had already lowered its annual outlook twice during the third quarter, forecasting operating profit to be "significantly below the prior year level." What the company said Mercedes said the poor figures were due to a "challenging market environment and fierce competition, particularly in China.
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