Mercedes-Benz expects higher margin on car division in fourth quarter, analysts say

MERCEDES-BENZ told investors on Monday it expected the adjusted margin of its passenger car division to be above its 6 to 7 per cent forecast for the fourth quarter of 2024, according to analysts at Bernstein Research and Jefferies.

The luxury carmaker, which is due to report full-year results on Feb 20, was confident it would achieve its full-year margin target of 7.5 to 8.5 per cent, the analysts’ notes said.

Executives were satisfied with their performance in China in the fourth quarter but remained cautious on the longer-term outlook for the market, according to the analysts, as excess capacity has driven prices down.

The automaker held a call with investors that was not open to the press during a closed period on company information ahead of its annual results. It was not available for comment outside business hours.

Mercedes-Benz reported on Jan 10 that core car sales fell by 3 per cent in 2024, but rose 1 per cent year-on-year in the fourth quarter, boosted by sales of its top-end vehicles.

The automaker cut its full-year profit margin target twice in 2024 and said it will step up cost cuts, joining a growing number of European rivals blaming a weakening Chinese car market for falling profits and margins. REUTERS