Faced with deep adjustments in the global automotive industry and market fluctuations, the Mercedes-Benz Group has demonstrated strong operational resilience.
Its 2024 fiscal data showed that after paying more than 10 billion euros in dividends and share repurchases, the group's free cash flow in 2024 reached 9.2 billion euros, and industrial net current assets remained stable at 31.4 billion euros, highlighting its excellent cash management capabilities.
Although the Group's EBIT fell slightly to 13.6 billion euros, the high cash conversion rate and strict cost control strategy effectively offset sales fluctuations and price pressures. Among them, the light commercial vehicle business maintained its industry benchmark position with an adjusted sales profit margin of 14.6%, confirming its risk resistance under the synergy of multiple business lines.
In 2024, the adjusted sales profit margin of Mercedes-Benz's passenger car business was 8.1%, a decline from the previous year, but the core strategic direction has been clear: driving profit recovery through technological cost reduction, supply chain optimization and the launch of high-value products.
The continued investment of 8.7 billion euros in R&D focuses on the MB.OS operating system and the new generation of electric platforms, laying the foundation for product intelligence and flexible production.
The company plans to accelerate the recovery of passenger car profit margins towards the double-digit target by improving the efficiency of direct sales channels, optimizing the vehicle portfolio and strengthening the premium capabilities of electric products, and to reshape growth momentum in the competition in the high-end market.
Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG, said: "Thanks to excellent products and strict cost control, the Mercedes-Benz Group achieved a solid performance in a very challenging market environment in 2024. In order to ensure that the company remains competitive in an increasingly volatile environment in the future, we are taking measures to make the company leaner, faster and stronger, and launching a product offensive with a series of intensive new models starting with the new CLA."
In response to the technological changes and demand differentiation in the industry, Mercedes-Benz is launching the most intensive product offensive in history with an "active evolution" attitude. Starting in 2025, the new CLA will kick off a model matrix covering pure electric, plug-in hybrid and high-performance fields, and by 2027, it will successively launch strategic models such as the new pure electric GLC, C-Class and the next-generation S-Class.
Based on the intelligent R&D system with modular architecture, enterprises can achieve deep integration of technology stack and customized development for regional markets, such as tailoring space and intelligent configuration for the Chinese market.
The "Operation Improvement Plan" that is being promoted simultaneously clearly aims to reduce production costs by 10% by 2027, and ensure that efficiency and flexibility are taken into account in the electrification transformation through supply chain collaboration and production flexibility.
China has always been one of the most important markets in Mercedes-Benz's global strategy. From 2014 to 2023, Mercedes-Benz and its partners have invested more than 100 billion yuan in China to continuously promote localization.
The Chinese market will continue to play an important strategic role under the new strategy. Mercedes-Benz is optimistic about the potential of the Chinese market and will continue to invest in the Chinese market to support the group's largest product offensive in history, including 7 long-wheelbase models designed specifically for the Chinese market.
In 2025, Mercedes-Benz will celebrate its 20th anniversary of production in China, opening a new chapter of localization. In 2025, the new pure electric long-wheelbase CLA model produced by Beijing Benz will be launched, opening the curtain of this product offensive. In mid-2026, the new long-wheelbase GLE SUV model will go into production. Subsequently, Fujian Benz will put into production a new luxury pure electric MPV based on the VAN.EA platform.
In 2025, Mercedes-Benz will also celebrate the 20th anniversary of R&D in China. R&D in China has developed into the largest and most powerful R&D network of Mercedes-Benz outside of Germany, with more than 2,000 R&D experts. The Beijing-Shanghai innovation "dual engines" enable Mercedes-Benz to make full use of China's innovation ecology and supply chain, and to innovate at the "China speed" based on the "Mercedes-Benz standard".
With the launch of the new CLA, all new Mercedes-Benz models will be equipped with the self-developed, AI-enabled Mercedes-Benz MB.OS architecture, which supports advanced intelligent driving technology. The new long-wheelbase CLA will be equipped with the "mapless" L2++ full-scenario high-level intelligent driving system developed by the Chinese R&D team.
In an era of intensified competition in the automotive industry, Mercedes-Benz has used financial resilience as a shield and product innovation as a spear, demonstrating the strategic determination and courage of a century-old auto company. Its strategy of streamlined operations, technological innovation and adherence to Mercedes-Benz standards not only provides a realistic path for its goal of returning profit margins to double digits, but also seizes structural opportunities during the industry differentiation period through the forward-looking layout of pure electric and high-end fuel product lines.
This proactive attitude of seeking change will inject certainty into its continued leadership in the luxury track in the next industrial cycle. In the process, the Chinese market will, as always, be a witness to the proactive change of this car inventor.
