Mercedes-Benz Group has reported a 7.4% decline in revenue to €33.22bn ($37.73bn) in the first quarter (Q1) of 2025, ending 31 March, from €35.87bn in the same period last year.
The German luxury automotive manufacturer attributes the decline to negative net pricing effects, a marginal decrease in unit sales, and a reduced component business with Beijing Benz Automotive.
For Q1 2025, the firm’s net profit stood at €1.731bn, a significant 42.8% drop from €3.025bn in the first quarter of 2024.
In the first three months of 2025, the automotive giant’s adjusted EBIT fell by 29% to €2.546bn.
However, the Group’s EBIT stood strong at €2.3bn, and the free cash flow from the industrial business showed a increase to €2.4bn, up from €2.2bn in the previous year.
Mercedes-Benz Group chief financial officer Harald Wilhelm said: “The all-new CLA kicks off our multi-year product and technology offensive, creating fresh momentum for Mercedes-Benz.
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By GlobalData“Desire for our current portfolio sustains our leadership position in the Top-End vehicle segment, including in China. This, combined with a healthy balance sheet provides a solid foundation to navigate our company through a period of geopolitical uncertainties.”
Looking ahead, the company maintains its divisional guidance unchanged, barring any additional tariff impacts.
However, if the currently implemented and announced tariffs remain effective until the end of the year, material impacts are expected, the company said.
In a press statement, Mercedes-Benz said: “The current volatility with regard to tariff policies, mitigation measures and resulting potential direct and indirect effects, in particular on customer behaviour and demand, is too high to reliably assess the business development for the remainder of the year. Therefore, reporting figures cannot be estimated with the necessary level of certainty.”
Mercedes-Benz also warned that if current trade policies continue, EBIT and free cash flow of the industrial business, as well as the adjusted returns on sales for Mercedes-Benz Cars and Mercedes-Benz Vans, are likely to face negative impacts.
Additionally, there is a possibility of adverse effects on the cash conversion rates of the automotive segments.
Recently, Mercedes-Benz has reportedly teamed up with Luminar Technologies to jointly develop the latest version of Luminar’s light detection and ranging (LiDAR) sensors, known as Halo
