Mercedes-Benz: Heavy Exposure to Weak High-End Chinese Consumer Demand Results in Profit Warning

Mercedes-Benz has reduced its profit outlook for 2024 based on a continued weak macroeconomic environment in China, which is particularly hitting demand for the group’s higher-end vehicle range. China is the group’s largest market for Mercedes' top-end vehicles. Previously, management expected the mix to improve in the second half of the year. The adjusted return on sales for the cars division has been reduced to a range of 7.5%-8.5%, down from a prior guided range of 10.0%-11.0%.