Mercedes-Benz hits 2023 sales forecast, supply snags weigh on Q4

MERCEDES-BENZ’S fourth-quarter sales took a hit from supply constraints and model changeovers, but full-year car deliveries were in line with its forecast at two million, the carmaker said on Thursday (Jan 11), as it prioritises boosting margins over volume sales.

The premium carmaker’s group sales rose 1.5 per cent to just under 2.5 million, but fourth-quarter sales were down 3 per cent for the Group and 4 per cent in the cars division as a shortage in 48-volt battery systems and a model changeover for its E-Class limited output.

Mercedes-Benz battery-electric passenger car sales rose 73 per cent over the year to 222,600, it said on Thursday, but battery-electric sales of its smart fortwo and smart forfour models fell 12 per cent.

The luxury carmaker warned over the course of the year of supply snags and inflation weighing on sales, with price wars particularly in the electric vehicle segment placing pressure on margins.

Still, it has said it expects to hit the lower end of its 12 to 14 per cent forecasted adjusted returns margin when it reports full-year financial results on Feb 22.

Rival carmaker BMW, which hit record sales of over 2.5 million cars this year, set expectations lower with an earnings margin forecast of 9 to 10.5 per cent but has said it expects to hit the higher end of that range. REUTERS