Mercedes-Benz Q2 earnings

Mercedes-Benz has reported a significant decline in its financial performance for the second quarter, with adjusted earnings before interest and taxes (EBIT) falling by 28% to €2.76 billion ($3 billion). The carmaker attributed this drop to a 25% decrease in battery electric vehicle sales and weaker demand in the crucial Chinese market. In light of these challenges, Mercedes has revised its profit margin outlook for its car division, now expecting a return on sales between 10% and 11%, down from the previously forecasted 10% to 12%. Despite these struggles, the company anticipates improvements in the latter half of the year, supported by new market launches, especially in the luxury segment. Overall, the company's total sales also fell by nearly 4% to €36.7 billion during the same period. This decline reflects broader challenges faced by German automakers, including stiff competition and supply chain issues.