Mercedes-Benz Concept CLA Class: Represents the electric future of desire. at the gateway to Mercedes-Benz.

Mercedes-Benz Group solid Q3 results underscore resilience in a subdued market environment

3rd Quarter Results 2023.

Q1 2024 Q3 2023 Q2 2023 Q1 2023 Q3 2022 Q2 2022 more

October 26, 2023 – Mercedes-Benz Group AG achieved solid third-quarter results in a subdued market environment marked by intense price competition, particularly in the electric vehicle segment. Earnings Before Interest and Taxes (EBIT) reached €4.8 billion (Q3 2022: €5.2 billion) as improved net pricing at Mercedes-Benz Cars and a rise in sales of premium vans helped to partially offset higher inflation, currency effects and supply-chain related costs. Revenue fell 1.4% to €37.2 billion (Q3 2022: €37.7 billion) in part because passenger car sales were around 5% lower in the quarter, due to a supplier-induced shortage of 48-volt systems.

Mercedes-Benz continues to pursue its strategy of profitable growth. Thanks to strong sales of Mercedes-Maybach and G-Class vehicles in the Top-End and good pricing overall, the adjusted Return on Sales (RoS) at Mercedes-Benz Cars reached 12.4% (Q3 2022: 14.5%). With an adjusted RoS of 15.0% (Q3 2022: 12.7%), Mercedes-Benz Vans once again benefited from solid demand and a favourable model mix.

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Harald Wilhelm, Member of the Board of Management of Mercedes-Benz Group AG. Finance & Controlling/Mercedes-Benz Mobility.

The team at Mercedes-Benz delivered solid results despite a challenging environment. We continue to demonstrate resilience thanks to desirable products and a disciplined go-to-market approach. While we remain vigilant regarding the macroeconomic outlook, we confirm our full-year financial targets for 2023.

Harald Wilhelm
Member of the Board of Management of Mercedes-Benz Group AG. Finance & Controlling/Mercedes-Benz Mobility
Harald Wilhelm, Member of the Board of Management of Mercedes-Benz Group AG. Finance & Controlling/Mercedes-Benz Mobility.


At the IAA in Munich, Mercedes-Benz showcased how it will redefine the segment with its Concept CLA Class, an electric car with efficiency of around 12kWh/100km, giving it a range of more than 750 kilometers (WLTP)¹. To accelerate the shift to electric mobility Mercedes-Benz is building its own global charging network. It opened its first charging hub a few days ago in Chengdu (China). Atlanta (USA) and Mannheim (Germany) will follow in a few weeks.

To further demonstrate the outstanding safety of its electric cars, Mercedes-Benz conducted the first live, frontal-offset crash test involving two electric vehicles. The passenger safety cell of both electric models remained intact and the doors could still be opened. In an emergency, this would make it possible for occupants to exit the vehicle on their own or for first responders and rescue personnel to reach them. The high-voltage system in the EQA and the EQS SUV switched off automatically during the collision.

Investments, free cash flow, liquidity

The free cash flow of the industrial business in the third quarter reached €2.3 billion (Q3 2022: €3.0 billion) on lower passenger car sales and higher investments into future technologies. The net liquidity of the industrial business rose to €28.5 billion (end of 2022: €26.6 billion). The Group’s investments into property, plant and equipment in the third quarter totaled €0.9 billion (Q3 2022: €0.8 billion). Research and development expenditure amounted to €2.5 billion (Q3 2022: €2.3 billion) due to higher investments in future platforms and technologies, including MB.OS.

Divisional results

Mercedes-Benz Cars Q3 revenue dipped 3.8% on lower vehicle deliveries, narrowing adjusted Earnings Before Interest and Taxes to €3.3 billion (Q3 2022 €4.0 billion). The average selling price remained stable in Q3 compared to the prior-year quarter reaching approximately €74,600 (Q3 2022: €75,400) and even rose slightly from approximately €73,500 in the second quarter. Healthy net pricing partially offset slightly lower volumes and the change in model mix. A €329 million headwind from foreign exchange further dampened earnings. Overall sales of Mercedes-Benz Cars reached 1,529,800 units in the first nine months of the year (+2%), and 510,600 units (-4%) in the third quarter. Volumes were impacted by a model changeover for the E-Class and a supplier bottleneck which constrained availability of the GLC in particular.

Mercedes-Benz continues to defend its leadership position in the Top-End Vehicle segment where the S-Class enjoys a market share of above 50% in China. Overall, Top-End Vehicle sales are expected to increase on a full-year basis.

In Q3, S-Class wholesale deliveries were impacted by a seasonal slowdown, temporary certification matters and the macroeconomic environment. However, S-Class sales were up 9% in China and retail sales in the U.S. rose 48% in the quarter.

In the Top-End segment Mercedes-Benz sales reached 246,500 units (+6%) in the first nine months of the year and 69,900 units in Q3 (-11%) as Mercedes-AMG sales were impacted by model changeovers of the GLC, the E-Class and entry models in China. By contrast, Mercedes-AMG BEV sales rose by 51% in the third quarter. Mercedes-Benz continues to expand the market for Top-End electric vehicles, with the Mercedes EQS SUV seeing a 162% rise in sales with strong growth in all regions. In the U.S., registrations of the EQS outpaced those of its main Top End peers in the first nine months of the year.

In the Core segment, Q3 sales reached 290,200 units (-1%) and in the Entry segment sales reached 150,500 units (-5%) as the A- and B-Class models received a mid-lifecycle makeover. The company presented the AMG GT Coupe and an all-new E-Class Estate.

Mercedes-Benz Vans increased its global sales in the third quarter of 2023 to 105,100 units (+1%) thanks to a strong contribution from commercial vans. Global sales of all-electric vans doubled to 6,300 units (Q3 2022: 3,100). All-electric sales accounted for 6% of total sales. In the strategically important U.S. market, the division sold 21,800 (Q3 2022: 15,500) units reaching the best sales quarter ever. Thanks to solid net prices, improved product mix and lower raw material costs, EBIT increased to €715 million (+44%) and was able to offset inflation and supply chain-related cost increases. Adjusted for non-recurring items, EBIT rose by 36% to €743 million. Revenue was up to €4.9 billion, 15% higher than in the prior-year quarter. This development resulted in a Return on Sales of 14.5% and an adjusted RoS of 15% respectively. Third-quarter cash flow amounted to €980 million and adjusted cash flow amounted to €1.04 billion.

In the third quarter of 2023 Mercedes-Benz Mobility’s new business increased to €15.2 billion and is above the level of the prior-year period (Q3 2022: €14.3 billion). The contract volume of Mercedes-Benz Mobility amounted to €133.8 billion at the end of September, matching the level at the end of the previous year (FY 2022: €132.4 billion). At €363 million, the adjusted EBIT was below the previous years level (Q3 2022: €577 million), a decrease mainly caused by higher refinancing rates and intensified competition in the financial services sector. In addition, the cost of credit risk is elevated, driven by a weakening macroeconomic environment as well as higher delinquencies in some markets. This combined with negative foreign exchange effects, resulted in a decrease of the adjusted Return on Equity (RoE) to 10.4% (Q3 2022: 15.8%).

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¹In real driving conditions, deviations from the certified standard values may occur. The real values are influenced by a variety of individual factors, e.g. individual driving style, environmental and route conditions.

This page contains forward-looking statements.