The Mercedes-Benz Cars division’s profit (EBIT before interest and taxes) fell dramatically in 2024 by 40.5% and the profit margin fell by 4.5%.
2024 was not a good year for the Mercedes-Benz Cars division. Turnover declined by 4.4% from €112.756 billion to €107.761 billion due to a 3% drop in sales from 2,044,051 to 1,983,403 units. In contrast, earnings before interest and taxes (EBIT) fell 40.5% from 14.224 to 8.46 billion euros.
The explanation for the dramatic fall in profit as turnover contracted by only 4.4% is due to the fall in profit margin below 10%, from 12.6% to 8.1%, but also to the investments in future platforms and especially in the new MB.OS operating system which required massive funds.
The fall in sales and profits is also due to very weak sales of electric models. They fell by 23.1% from 240,668 to 185,059 units, half the sales of BMW electric models.
In contrast, sales of PHEV models rose slightly from 161,275 to 182,551 units. The larger number of PHEV versions and record electric ranges of over 100 km as well as the possibility to charge the battery at DC fast-charging stations, Mercedes being among the very few manufacturers offering DC charging for PHEV models, have led to the increase in sales of this type of propulsion.
But here too the situation is uncertain as the new compact range doesn’t have a PHEV version for the time being, with the CLA debuting an electric version and the mild hybrid version coming in 2026. Mercedes hasn’t given any details so far about possible PHEV versions of the new compact range.
Discounts on offer, reduced sales especially in China and the lack of electric models in key segments have led to this unfavorable situation. Still, Mercedes distributed dividends worth €4.30 per share.
The year 2025 promises to be just as complicated as Mercedes won’t have many new products this year to boost sales. The main novelties are the electric Mercedes CLA and Mercedes C-Class facelift, while the electric Mercedes C-Class and GLC and S-Class facelift will not debut until 2026. Also coming in 2026 is the CLA with a mild hybrid drive system and the new GLB built on the same MMA platform.