Mercedes-Benz reports slight dip in Q3 car sales due to weaker demand

Weak demand especially in Asia outpaced any improvement in product availability, said Mercedes-Benz which said on Thursday it sold fewer cars in the third quarter by a slight margin. The automaker sold 503,600 vehicles in total, down 1% compared to the same quarter last year. Top of the sales figures is the drop in battery electronic vehicle (BEV) sales, falling 31% year-on-year to 42.500 units. But the decline is part of a wider malaise in the luxury vehicle market in the key regions, such as China.

Sales plunged 13 per cent in China, where 170,700 cars were sold. The decline, the company said, was related to reduced consumer demand for luxury goods and continued price cuts in a market environment that has diminished demand for luxury items.

China remains a challenge but Mercedes-Benz is continuing to develop its product portfolio in the country. Among other things, this year the automaker plans further Intelligent Drive updates in its core segment to enhance the overall appeal and competitiveness of the vehicles.

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It highlights a world in flux for luxury car makers, as consumers' tastes fluctuate and markets shift. While short term set backs are being faced at Mercedes-Benz, they are concentrating on strategic updates and amendments in order to develop a better fit with the customers’ expectations.

Putting the third quarter sales dip in perspective, the company featured overall a small loss for the quarter and the automotive market is very dynamic and changing in Asia. Mercedes' aim is to regain momentum in the competitive luxury segment and the onslaught of the current economic environment.