It must have turned out well. Because larger discounts were an exception across the entire auto industry in 2023. This was also seen in the business figures from Stellantis and Renault that have already been presented. Stellantis achieved an EBIT margin before interest and taxes of 11.8 percent. Mercedes Cars will be in a similar area. 2023 was not a celebratory year for Mercedes, but the profit is right.
Also read: The value of an electric car plummets almost overnight
Will Mercedes remain so profitable?
Mercedes is facing a difficult year. China, the success of the electric car at the top end and the weak economy are the three big challenges for 2024. This makes the year the first test of the luxury strategy. The discounts have been back since January. The economy is doing poorly, and without discounts there will be little change in the car market. Mercedes will also feel this in 2024.
And what about electric cars?
Mercedes was able to increase its electric car sales in 2023. But almost two thirds of new registrations of battery-electric vehicles at Mercedes in Germany were A-, B- and C-class vehicles. The top end of the Mercedes electric car is still struggling. That could also be a reason for the declines in China