Mercedes-Benz E-Class.

Q2 performance underpinned by strong sales of Top-End cars and premium vans

2nd Quarter Results 2023.

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July 27, 2023 – Mercedes-Benz Group’s sharpened focus on sustainable growth through sales of desirable cars and premium vans, combined with tight cost control, lifted second-quarter Earnings Before Interest and Taxes (EBIT) by 8% to €5.0 billion (Q2 2022: €4.6 billion) and revenue by 5% to €38.2 billion (Q2 2022: €36.4 billion).

At Mercedes-Benz Cars the adjusted Return on Sales (RoS) reached 13.5% in the quarter (Q2 2022: 14.2%) thanks to disciplined pricing and strong sales of Top-End vehicles, as well as Mercedes-Benz SUV models, including electric variants. At Mercedes-Benz Vans the Q2 adjusted RoS rose to 15.5% (Q2 2022: 10.1%) due to favourable pricing and higher sales.

Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG.

Our solid financial performance is the result of disciplined strategy execution in a dynamic environment. For this I would like to thank the entire Mercedes team. We expect the pace of sales from the first half of 2023 to continue for the remainder of the year, given the strength of our pipeline of desirable products: Customers will be able to choose from additional models when the new E-Class, the CLE Coupe and GLC Coupe hit showrooms later this year. And at the upcoming IAA we will give a preview of how Mercedes-Benz will elevate and electrify the entry segment based on our MMA architecture.

Ola Källenius
Chief Executive Officer of Mercedes-Benz Group AG
Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG.


In the second quarter, the company continued its transformation with several technological innovations. Mercedes-Benz launched a beta program for the integration of ChatGPT into Mercedes-Benz passenger cars in North America. Users of MBUX¹ can use ChatGPT to enhance the voice assistant to not only accept natural voice commands, but also to conduct conversations with comprehensive answers. The data shows that participants are twice as likely to interact with MBUX when using the ChatGPT functionality.

The new E-Class, which comes equipped with a precursor of the MB.OS operating system, received excellent feedback and will hit showrooms in the second half of the year. Mercedes-Benz will offer “Automatic Lane Change” function in Europe, an intelligent driving assistance systems in the SAE-Level 2² in time for delivery of the first units of the new E-Class.

Expand charging options

The company continues to expand charging options for its customers. In addition to advancing plans for its own Mercedes-Benz High-Power Charging Network, it will adopt the North American Charging Standard (NACS) giving customers access to the Tesla supercharger network in North America in 2024 and this week unveiled plans to develop a new a high-powered charging network across North America together with Hyundai, Honda, Kia, General Motors, BMW and Stellantis.

In September, Mercedes-Benz will showcase its MMA platform (Mercedes Modular Architecture), designed to redefine the entry segment with MB.OS and other features to elevate the product substance.

Investments, free cash flow and liquidity

The free cash flow of the industrial business increased to €3.4 billion (Q2 2022: €1.4 billion). The positive development of working capital was mainly due to lower inventory build-up compared to the previous year. The inventory build-up is a result of the introduction of the direct sales model in additional markets, ramp-ups in production due to new model years and high levels of vehicles in the process of delivery.

The net liquidity of the industrial business rose to €25.8 billion (end of 2022: €26.6 billion). The Group’s investments in property, plant and equipment in the second quarter totaled €0.8 billion (Q2 2022: €0.8 billion). Research and development expenditure amounted to €2.4 billion (Q2 2022: €2.2 billion) due to higher investments for future platforms and technologies, including MB.OS. Mercedes-Benz announced its third Green Bond after two years in Europe.

Divisional results

Mercedes-Benz Cars Open all

Demand for battery electric and Top-End segment vehicles lifted sales of Mercedes-Benz Cars by 6%, to 515,700 units in the second quarter, and by 5% to 1,019,200 units in the first half of 2023. Sales were boosted by solid demand in Germany and the United States in particular and growth across all regions and segments. Mercedes-Benz continues to remain disciplined with a focus on sustainable growth, even in a dynamic market environment. BEV sales of Mercedes-Benz Cars almost doubled to 61,200 units (+96%) in Q2. Excluding smart, BEV sales even surged by 123%. Sales in the Top-End segment rose by 12% to 84,800 units in Q2 and 15% to 176,600 vehicles in the first six months of 2023. In the Core segment, sales were up 2% to 276,800 units in the second quarter impacted by a model changeover for the GLC and E-Class. Sales in the Entry segment increased by 11% to 154,100 units in Q2 and even grew 19% in the first half of 2023, reaching 317,500 vehicles.

Mercedes-Benz Vans Open all

Mercedes-Benz Vans significantly increased its global sales in the second quarter of 2023 to 119,500 units (+19%) due to the particularly strong contribution from commercial vans. Global sales of all-electric vans increased notably in the second quarter of 2023 to 5,100 units (Q2 2022: 4,300). Thus, the share of all-electric models accounted for 4.2% of total sales. With the recent start of sales of the EQT and eCitan, the product portfolio now offers an electric variant in each segment. Solid net pricing and higher unit sales helped to outweigh cost increases and inflation while the fixed cost base saw a strong improvement. Overall, the adjusted Return on Sales (RoS) for Mercedes-Benz Vans rose to 15.5% (Q2 2022: 10.1%). In May, the division presented its Strategy Update for strengthening its position as a leading manufacturer of light commercial vehicles and received favourable feedback from capital market representatives and media. The midsized Van segment will receive a facelift to give private segment vehicles a more luxurious design and to sharpen the premium appeal in the commercial segment.

Mercedes-Benz Mobility Open all

Compared to the second quarter of the previous year, Mercedes-Benz Mobility tripled its new business volume for battery electric vehicles to €1.8 billion (Q2 2022: €0.6 billion). Overall, with €15.4 billion, the new business of Mercedes-Benz Mobility increased compared to the previous year’s quarter (Q2 2022: €14.1 billion). In a challenging market environment, especially in China, the contract volume of Mercedes-Benz Mobility amounted to €131.4 billion (FY 2022: €132.4 billion). The adjusted EBIT of €448 million (Q2 2022: €624 million) was mainly driven by a declining interest margin, which was partially offset by a normalized cost of credit risk. Profitability was impacted by lower margins due to higher refinancing rates and intensified competition in the financial services sector, as well as from higher investments in charging. As a result, the adjusted Return on Equity (RoE) decreased to 12.8% (Q2 2022: 17.1%).


Outlook on the further business development of the Mercedes-Benz Group.

Rebroadcast call for analysts and investors

Rebroadcast media conference call

¹All vehicles with MBUX of model series A 238, C 118, C 167, C 238, C 253, C 254, C 257, H 247, N 293, R 232, S 213, V 167, V 177, V 295, V 297, W 206, W 213, WV 223, X 167, X 243, X 247, X 253, X 254, X 294, X 296, Z 223 and Z 296.

²The Mercedes-Benz driving assistance and safety systems are aids, and do not relieve the driver of their responsibility. Please note the information in the Owner's Manual and the system limits which are described therein.

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