Mercedes-Benz Group AG expects its carmaking margin to drop to as low as 6% this year as it grapples with fierce competition and uneven demand in the global auto market.

Benz's passenger car division on Thursday reported a 40.5% drop in annual earnings, and said it expected significantly lower earnings in 2025 for the group as it worked to boost competitiveness and cut costs.

Mercedes-Benz Group AG expects earnings to be significantly lower this year and will cut production costs to boost profitability.

The luxury-car maker aims to slash production costs by 10% over the next couple of years, including shifting some manufacturing from Germany to lower-cost countries.

Mercedes-Benz on Thursday launched a fresh cost-cutting plan to revive sales and margins and battle stiff competition as the German carmaker forecast a big drop in earnings in 2025. Its car division reported a 40% slump in 2024 earnings as sales in the key Chinese and German markets took a battering.

Mercedes-Benz has warned that its profits will be “significantly” lower this year as the German carmaker battles a steep drop in demand. The warning came as the Stuttgart-based company reported that net profits fell 28 per cent to €10.

Mercedes-Benz warned of looming cost cuts Thursday and gave a bleak outlook for 2025 after its profits plunged almost a third last year amid a slump in China and slowing

Mercedes-Benz has launched plans to boost returns in its car division to 10% or higher, the German luxury automaker said on Thursday, after reporting a 40.5% slump in 2024 earnings. The carmaker, whose sales took a battering in its key markets of China and Germany last year,

German luxury carmaker Mercedes-Benz on Thursday presented a plan to increase sales and cut costs, after annual earnings figures showed a significant decline in profits due primarily to weakening business in China.