Mercedes car earnings plunge as China shuns luxury

Published On Oct 25, 2024, 1:02 AM

Mercedes-Benz reported a dramatic 64% drop in earnings for its car division in the third quarter of 2024, missing analysts' estimates significantly. This decline is attributed to reduced consumer spending on luxury goods in China, a result of economic weakness and a real estate crisis. The company anticipates slightly lower annual car sales compared to last year and consistent sales in the fourth quarter. Additionally, ongoing issues with the rollout of new models are impacting performance. Mercedes has called for cost-cutting measures and warned that the global luxury market is under pressure from evolving consumer behavior.