Mercedes-Benz says demand is expected to remain ‘weak’ in automotive markets

The company said, “The assumptions regarding the overall economic conditions and the development of the automotive markets continue to be characterized by exceptionally high levels of uncertainty. In addition to unexpected macroeconomic and geopolitical developments, trade policy events in particular are causing uncertainty for the world economy and thus for the business development of the Mercedes-Benz (MBGYY) Group. The growth outlook for the world economy has recently deteriorated noticeably. Weak consumer sentiment and the impact of a significant increase in US tariffs will weigh on growth this year, particularly in the USA. In China in particular, the tariffs are expected to contribute to a significant slowdown in exports, amid persistently weak domestic demand; however, fiscal stimulus should support growth in return. Most central banks are expected to respond to this slowdown in growth with further interest rate cuts. However, tariffs will significantly increase inflationary pressure in the USA and make interest rate cuts by the Federal Reserve Bank more difficult. Overall, a noticeable slowdown in global growth to just over 2% is expected. Customer demand is expected to remain rather weak in the global automotive markets. Accordingly, based on the current assessment, the global car market for 2025 as a whole is likely to remain at the previous year’s level. In the sales region Europe, the market is also expected to be on the same level as last year. The market in the USA is expected to decrease slightly. In China, the market is expected to remain unchanged versus the prior year. In the Chinese premium and luxury segment, a weaker sales performance than in the prior year is expected for many foreign manufacturers. Key van markets show a mixed picture this year. In Europe, the market segment for mid-size and large vans is expected to decline slightly compared to the prior year. The small van segment in Europe is also expected to decline slightly. The US market for large vans is expected to remain at the previous year’s level. In China, the market segment for mid-size vans is expected to experience a significant increase.”