China Slowdown "Becomes A Nightmare" For Automakers

Mercedes-Benz shares in Germany tumbled on Friday after the luxury carmaker slashed its full-year profit outlook.

The company warned that further deterioration of the macroeconomic environment, specifically in China, was the primary reason vehicle demand softened.

"This affected the overall sales volume in China, including sales in the Top-End segment. Overall, the sales mix in the second half of 2024 is expected to remain unchanged versus the first half, and therefore weaker than originally expected," Mercedes wrote in a statement.

Just last week, BMW slashed its full-year earnings guidance, blaming the downturn in China and sliding EV sales.

Earlier this month, Volvo Cars offered a dismal outlook and no longer projected 100% all-electric vehicle sales by 2030.