Mercedes lowers sales outlook as demand slumps in China
Mercedes-Benz cut its sales forecast after Q2 profits dropped 26%, impacted by a 30% sales slump in China amid stiff local competition.
German automaker Mercedes-Benz has reduced its full-year sales forecast following a sharp decline in second-quarter earnings driven by weakening demand in China.
During the second quarter, the luxury car manufacturer recorded a 30 percent drop in Chinese sales. This slump contributed to a 26 percent fall in adjusted operating profit compared to the same period last year.
The financial results increase pressure on Chief Executive Officer Ola Källenius. Mercedes, alongside European rivals such as BMW, faces growing challenges in China, where domestic automobile producers have engaged in an aggressive market price war.
Sources: Sweden Herald