Mercedes looks to 2024 taking into account what it calls "an exceptional degree of uncertainty".
Contributing to this situation is the risk of unexpected developments in geopolitical events and trade policies, such as the current conflict in the Middle East, the Russia-Ukraine war and other regional crises.
Other potential uncertainties weighing on Mercedes' forecasts for the current year include escalating tensions between China and the United States and a further deterioration of political relations between the European Union and China.
Further supply chain disruptions and in particular bottlenecks in the availability of critical components also remain a significant risk factor.
All this with a possible impact on supply chains and on the price trend of raw materials and energy.
Mercedes-Benz Cars expects unit sales to be at the same level as the previous year, it said today at its 2023 annual financial results conference.
However, some themes remain and will impact sales in 2024. This will likely last through the first half of 2024 with first quarter sales below the 2023 level.
By the end of 2024 the Three-Pointed Star Group expects a xEV share (100% electric models) around 19%-21% of new car sales.
Adjusted return on sales (RoS) is expected to remain in the solid 10% - 12% range with stable volumes and a consistently high share of high-end model sales.
Mercedes-Benz Cars will seek to defend and maintain prices at 2023 levels. The used vehicle business is expected to remain at a healthy and positive level in absolute terms, albeit slightly lower than 2023. Total sales of Mercedes-Benz Vans will decline in the second half of 2024 and will be slightly lower in 2024 with a strong first quarter.
The xEV share is expected to be between 6% and 8% with the new eSprinter available for sale in early 2024.
Mercedes-Benz Vans' research and development expenditure - together with other investments in plants and facilities - will be however significantly higher in 2024. This is substantially linked to the new Van.EA electrical architecture.
The correct RoS is between 12% and 14%.
Net prices and mix are expected to develop solidly.
At Group level, Mercedes-Benz expects revenues in 2024 to remain at the previous year's level but, due to a difficult market environment, Group earnings before interest and taxes (EBIT) are expected to be slightly lower at the previous year's level.
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