Mercedes hits 2023 sales forecast, supply snags weigh on Q4

BERLIN -- Mercedes-Benz Car's fourth-quarter sales took a hit from supply constraints and model changeovers, but full-year deliveries were in line with its forecast at 2 million, the automaker said, as it prioritizes boosting margins over volume sales.

Fourth-quarter sales were down 4 percent on a shortage in 48-volt battery systems and a model changeover for the E-Class limited output, the automaker said in a statement.

Mercedes’s brand’s battery-electric car sales rose 73 percent over the year to 222,600, the automaker said on Thursday, but BEV sales of its Smart fortwo and Smart forfour models fell 12 percent to18,100.

Mercedes warned over the course of the year of supply snags and inflation weighing on sales, with price wars particularly in the BEV segment placing pressure on margins.

Still, the automaker has said it expects to hit the lower end of its 12-14 percent forecasted adjusted returns margin when it reports full-year financial results on Feb 22.

Rival BMW, which hit record sales of over 2.5 million cars this year, set expectations lower with an earnings margin forecast of 9-10.5 percent but has said it expects to hit the higher end of that range.