Germany's leading luxury carmaker,Mercedes-Benz Group AG,reported a decline in its 2024 financial results on Thursday,citing weaker demand in its car division.Despite the challenging environment,the company remains focused on driving growth through an extensive product launch campaign and is committed to increasing its investments in China.
Ola Kaellenius,chairman of the board of management at Mercedes-Benz,described the results as"solid"in a"very challenging environment."The group earnings before interest and taxes(EBIT)totaled 13.6 billion euros(14.2 billion U.S.dollars),while revenue reached 145.6 billion euros,reflecting a 4.46 percent drop from the previous year.The car division reported the sharpest decline,with EBIT falling to 8.7 billion euros due to weaker demand.
To boost sales,Mercedes-Benz is set to launch an"intense product launch campaign"featuring multiple new vehicle models starting this year,Kaellenius said.
The group has also introduced a comprehensive performance enhancement program to strengthen its competitiveness and resilience."Overall,sales are expected to gain traction after dozens of new or refreshed models reach the markets until 2027,"the company said in a press release.
As part of its global product launch program,Mercedes-Benz will roll out a range of exclusive products across all market segments and drive types in China starting in 2025.
The company,which has been operating in China for two decades,reaffirmed its commitment to increasing its investment in the country to push forward high-quality development alongside local partners.
In 2024,Mercedes-Benz,along with its Chinese partners,pledged an additional 14 billion yuan(1.92 billion dollars)to expand its product portfolio in China.Additionally,the company inaugurated a new research and development building in Shanghai last year,an upgrade to its existing research center,with an investment of 69 million yuan(about 9.47 million dollars).
These strategic initiatives highlight Mercedes-Benz's ongoing efforts to inject new growth momentum into its business growth in China and innovation worldwide.(1 euro=1.04 U.S.dollar)
