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Mercedes posts disappointing Q1 sales; German, Chinese markets weigh

Published 04/11/2024, 09:14 AM
© Reuters.

Investing.com - Mercedes Benz (ETR:MBGn) has reported disappointing first-quarter sales figures, with the German premium carmaker particularly hard hit on its home ground as well as the important Chinese market.

Deliveries fell to 568,400 cars and vans in the January-March period, while sales of battery electric vehicles dropped even more sharply, by 9%, to 50,500 vehicles, the auto giant said on Wednesday.

“Mercedes reported very weak sales in Germany and in China, down 17% and 12% respectively, and reflecting underlying market weakness as well as supply constraints and some reversal of stronger Q4 23 deliveries,” said analysts at Citi, in a note dated April 11.

The bank added that “the decline in China sales, market share, and JV earnings remains of some concern – albeit at associated income level offset by stronger Daimler (OTC:MBGAF) Truck contributions.”

Peer BMW (ETR:BMWG)'s sales rose 1% in the quarter, with sales of fully electric vehicles adding 27.9%.

“Unlike BMW, Mercedes does not have a huge Q1 23 production comp, which at least makes that comparison easier. Nevertheless, we expect Mercedes to report Auto EBIT margins at the very low end of its guidance range<” Citi added.

At 09:10 ET (13:10 GMT), Mercedes stock rose 0.1% to €76.03. 

Its shares have performed well this year, trading over 20% higher year-to-date, with the company’s share buyback acting as the key share price support, Citi noted.

The U.S. bank has maintained a neutral rating, with a €72 12-month price target.



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