Latest news with #Mercedes-BenzGroupAG
Mint
11 hours ago
- Automotive
- Mint
Mercedes Sees Earnings Drop Over Tariffs, China Competition
Mercedes-Benz Group AG reinstated guidance at a lower level, citing pressure from President Donald Trump's tariffs and tough competition in China, where local brands are dominating on electric vehicles. The German manufacturer now expects a carmaking margin of as low as 4% this year, below the at least 6% it had projected before withdrawing its outlook due to Trump's trade moves. The duties are weighing on prices and sales, and Mercedes warned that group revenue will come in significantly below last year's level. The mounting trade hurdles add to a deeper structural challenge in China, where a fierce EV price war led by domestic automakers is hurting margins. Mercedes has struggled to gain traction there with its more expensive models like the EQS, the battery-powered version of its flagship S-Class limousine. The likes of BYD Co. are also expanding in Europe's stagnant auto market. Mercedes' carmaking margin halved to 5.1% in the second quarter after unit sales fell 9%. The company also cited significantly lower demand for vans and declining revenue for its mobility business. The luxury-car maker is among companies heavily exposed to tariffs. Mercedes faced 27.5% in levies on cars shipped from the European Union to the US for much of the second quarter. It also exports sport utility vehicles made at its Alabama plant to China, where they faced local levies well above 100% early last quarter before a mid-May trade truce lowered them to roughly 35%.
Bloomberg
12 hours ago
- Automotive
- Bloomberg
Mercedes Sees Earnings Drop Over Tariffs, China Competition
Mercedes-Benz Group AG reinstated guidance at a lower level, citing pressure from President Donald Trump's tariffs and tough competition in China, where local brands are dominating on electric vehicles. The German manufacturer now expects a carmaking margin of as low as 4% this year, below the at least 6% it had projected before withdrawing its outlook due to Trump's trade moves. The duties are weighing on prices and sales, and Mercedes warned that group revenue will come in significantly below last year's level.
Bloomberg
23-07-2025
- Automotive
- Bloomberg
European Carmakers Surge on Tariff Optimism After US-Japan Deal
European automakers' stocks rallied after the US-Japan trade deal sparked hopes that American import tariffs on their vehicles could be cut. Volvo Cars AB 's shares surged over 15% on Wednesday, the most on an intraday basis since February, while BMW AG, Mercedes-Benz Group AG, and Volkswagen AG also advanced after the US set automotive tariffs on Japanese imports at 15% — down from the 27.5% rate imposed by President Donald Trump since April.
Euronews
16-07-2025
- Automotive
- Euronews
Tesla opens first showroom in India, but too expensive for locals
Tesla opened its first showroom in India on Tuesday, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market. Located in the Bandra-Kurla Complex, an upscale business centre in the financial capital of Mumbai, the showroom will serve as Tesla's flagship retail and experience outlet as the company introduces its EV lineup to Indian customers. Tesla's entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the United States. Sales of Tesla electric cars fell sharply from April to June as boycotts continued over CEO Elon Musk's political views, keeping buyers away. For India, Tesla's entry signals rising investor confidence and strengthens its move towards clean mobility, although Tesla's higher pricing is likely to make its cars unaffordable for most Indians. The country's nascent electric vehicle market made up a little more than 2 per cent of total car sales last year. But the government wants to change that and increase the electric vehicle share to 30 per cent by 2030. Tesla will begin by importing and selling its popular Y model cars in India. The base price would be 6.78 million rupees (€68,000) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch on Tuesday. Delivery is expected to start from the third quarter, Tesla officials said. By comparison, the price tag is around $44,990 (€37,000) in the US without a federal tax credit. Tesla will compete mostly with German luxury carmakers such as BMW and Mercedes-Benz Group AG, and not budget Indian players like Tata Motors Ltd. and Mahindra & Mahindra Ltd. The luxury car market makes up just about 1 per cent of total vehicle sales. Wooing Tesla The debut by American EV giant, however, would bring in world class technology to the country, auto analyst Gaurav Vangaal said. 'With deeper local investments, Tesla can accelerate India's EV ecosystem, drive innovation, and support the government's goal of higher EV penetration,' said Vangaal, an associate director with S&P Global Mobility. Prime Minister Narendra Modi's government has wooed Tesla for years for its global brand value and to boost the country's clean energy endeavours. Musk invited Indians in April 2016 to preorder the upcoming Tesla Model 3. Several customers placed an order, but the cars never arrived and the bookings had to be refunded. Despite his earlier enthusiasm, in 2019 Musk expressed concern in a post on his social media platform X that import taxes could double prices of Tesla cars, making them 'unaffordable'. Tesla pressed Indian authorities to cut import taxes on EVs, which were up to 100 per cent, to be able to test the local market. New Delhi, however, wanted Tesla to set up manufacturing facilities so a comprehensive policy could benefit all the players in the sector. The dynamics changed after Modi and Musk met in the US in February during a state visit by Modi. Barely a month later, India rolled out a new policy to woo the likes of Tesla, reducing import taxes to 15 per cent from 70 per cent to 100 per cent for EVs priced cheaper than $35,000 (€29,900), as long the automaker committed to building a factory in the country within three years. Soon after, Musk announced he would visit India in April to meet Modi. It was widely expected he would unveil Tesla's plans to set up manufacturing facilities and commit billions of dollars in investments. But Musk cancelled the visit, citing 'very heavy Tesla obligations,' and travelled to China instead. Since then, Tesla has conveyed it does not have an immediate interest in manufacturing in India. US President Donald Trump has said it would be 'unfair' to the US if Tesla builds a factory in India to circumvent that country's tariffs. Besides bringing Tesla to India, Musk's goal has been to launch Starlink's commercial internet services there. The plan got a boost recently after the company secured regulatory clearances. Starlink now needs to secure telecommunications airwaves from the government, which may take at least a couple of months, before the services are formally launched.
Time of India
09-07-2025
- Automotive
- Time of India
Porsche warns of challenging H2 after 6% sales decline
Porsche AG warned of a tough road ahead for sales this year after a slowdown in the lucrative US market and persistent weakness in China. The sportscar maker's global deliveries fell 6 per cent in the first half of the year, an improvement on the sharper decline recorded in the first quarter. In North America, where Porsche relies solely on imports, growth slowed to 10%, from a 37 per cent surge in the three months through March. 'We expect the environment to remain challenging,' Matthias Becker, Porsche's board member for sales and marketing, said Tuesday in a statement. The company cited fierce competition in China as the main factor behind its 28 per cent sales slump in the world's biggest auto market. European luxury-car makers are losing momentum in the US and continue to fall behind in China, where local brands are taking over. Mercedes-Benz Group AG on Monday said its sales dropped 10 per cent in the second quarter after President Donald Trump's tariffs curbed deliveries in the US and China. Porsche is one of the manufacturers most exposed to the levies because it lacks a factory in the US. Addressing its performance in China, the Volkswagen AG-controlled brand pointed to fierce competition in the luxury and electric-vehicle segments that are increasingly dominated by homegrown manufacturers led by BYD Co. Global sales of the 911 fell 9 per cent due to the phased introduction of updated versions. The Macan sport utility vehicle was the brand's top performer, with sales up 15 per cent in the first half — almost 60 per cent of them the all-electric version.
