Apparently Mercedes fans don't want electric models

© Mercedes

The German premium manufacturer is getting stuck. The third quarter 2024 results are just in and they are alarming.

Electric vehicle sales s collapse by 31% compared to the same period in 2023. A situation which raises questions about the brand's massive electrification strategy.

Figures which make you dizzy

The observation is brutal: Mercedes sold only 42,544 electric cars between July and September 2024. A staggering drop of 19,077 units compared to the previous year.

This decline is not limited to the last quarter. Over the first nine months of 2024, the brand suffered a 22.1% drop in its electric sales, with only 135,908 models sold.

The group's overall turnover follows the same trend with a drop of 6.7%. Even more worrying, earnings per share collapsed by 47.5%. These catastrophic results come at a time when Mercedes offers one of the most comprehensive electric ranges in the premium market.

BMW widens the gap

The comparison with BMW is particularly painful. While Mercedes is struggling to sell its electric models, its Munich rival is showing growth of 19.1% in the same segment. BMW delivered 294,054 electric vehicles in the first nine months of 2024, more than double Mercedes' sales.

Mercedes has nevertheless bet big on electric. The brand now offers a complete range with 8 100% electric models. But this product offensive is clearly not finding its audience. Even sales of plug-in hybrids are down 14.7%.

Management tries to reassure

© Mercedes

Harald Wilhelm, Mercedes' CFO, acknowledges that the results are not up to the group's ambitions. To get back on track, the company promises to step up its efforts to reduce production costs. But management remains clear-headed: 2024 sales will be lower than those in 2023.

Mercedes points to a ” difficult market environment “ and ” fierce competition, particularly in China “. The Chinese market, crucial for premium manufacturers, is proving particularly complicated with the rise of local brands offering innovative electric vehicles at competitive prices.

A necessary rethink

These results raise questions about the adequacy between Mercedes' offering and the expectations of its traditional customers. The brand may have to review its electrification strategy or find new arguments to convince its customers to take the plunge into electric.

• Mercedes electric car sales fall by 31% in the third quarter of 2024
• BMW does twice as well with 294,054 electric vehicles sold over nine months
• Mercedes promises to reduce its production costs, but already expects 2024 results to be lower than 2023

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