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Mercedes-Benz: Steady growth driven by new E-Class, SUVs, and PHVs expected in 2016

China projected to see further sales expansion as largest market

2016/05/23

Summary
Midterm target and 2016 outlook for Mercedes-Benz Cars
Model lineup renewal
China: annual production capacity increased to 250,000 units
Enhancement of production network: Germany, USA and other markets
Mercedes-Benz’s unit sales and business performances
Production Forecast by LMC Automotive: Daimler's production to reach 2.75 million units in 2019

Summary

Record unit sales, revenue, and EBIT in 2015

Mercedes-Benz, Daimler’s passenger car division, achieved record high unit sales of two million vehicles in 2015, up 16.2% year-over-year (y/y). This growth was driven by the new C-Class, compact cars, and SUV models. By region, China was the automaker’s biggest sales market for the first time with an increase of 36.8% in unit sales. Driven by this growth, Mercedes-Benz achieved record levels of revenue and EBIT (Earnings Before Interest and Taxes).

Double-digit growth expected for 2016 unit sales; revenue and EBIT to surpass 2015 levels

In 2016, Mercedes-Benz plans to launch a number of new models including an all-new E-Class, C-Class Convertible, and smart cabrio. Moreover, capital expenditures and investments in research and development (R&D) activities will be significantly increased to create the right conditions for sustainable growth. Daimler forecasts that Mercedes-Benz will achieve double-digit growth in unit sales in 2016 and see its revenue and EBIT surpass 2015 levels.

Strengthening Chinese business

In China, the biggest market for Mercedes-Benz, the automaker is aiming to increase sales by expanding its model lineup, dealer network, local production, and local R&D activities. In 2015, annual production capacity in the country was raised to 250,000 units with two new plants opening. Among the vehicles sold in China, two-thirds were locally produced. Launches planned for 2016 include the new E-Class, new C-Class Coupe, and facelifted GLS

According to LMC Automotive’s forecast released in the first quarter of 2016, Daimler’s global light vehicle sales are projected to be 2.47 million units in 2016, up 9.6% y/y. Daimler’s sales will continue to grow gradually to 2.67 million units in 2019, an increase of 7.9% compared to 2016.

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