Mercedes Sales Drop Over 25 Percent In China

Mercedes reported that earnings before interest and taxes fell by approximately 17 percent in the first quarter compared to the previous year. The company's EBIT for the period reached 1.9 billion euros. The report was discussed by BR24 in Munich. Revenue for the automaker fell by 5 percent to 31.6 billion euros. The company cited US tariffs and weak business in China as primary reasons for the decline. Passenger car sales in China dropped by nearly 25 percent at the start of the year due to intense competition and sluggish demand. CEO Ola Källenius recently noted the difficulty of operating in the world's largest automotive market during an auto show in Beijing. The company attributed the results to US tariffs and a nearly 25 percent drop in Chinese passenger car sales. Mercedes-Benz reported a sales decline of more than 25 percent in China at the start of the year. The manufacturer is facing challenges from weak sales figures in the Chinese market and increased US tariffs. The company plans to release more than 40 new models by 2027 to overcome the crisis. Mercedes shares fell 5 percent to 31.6 billion following the report.