Mercedes: Premium Pricing Offsets EV Softness
This update shares findings from Woozle Research’s Q1 FY25 channel checks with European Mercedes-Benz dealerships. Despite soft volumes, dealers reported strong ASP growth, stable financing, and effective margin management, outperforming consensus expectations in key regions.
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Resilience check: Q1 FY25 channel checks show Mercedes-Benz Europe beating low investor expectations on pricing and profitability, even as volume and EV demand remained uneven across core markets.
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100% of dealerships reported YoY increases in average selling prices, driven by premium mix and inflation-aligned pricing.
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Aggregate volume growth across Europe was +0.5% YoY, modestly above consensus.
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43% of dealers saw revenue gains; only 14% reported declines.
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UK dealers reported +2–6% volume growth, driven by S-Class and A-Class demand.
Financing tailwind: Strong financing availability and targeted promotions helped support foot traffic and internal target achievement amid ongoing macro sensitivity.
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71% of dealerships said financing remained stable; 29% saw improvements.
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86% described inventory levels as optimal, limiting stock-driven discounting.
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57% of dealers saw YoY traffic gains; 43% met or exceeded sales targets.
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PHEV demand showed some lift, but 43% of dealers flagged BEV sales declines due to price and charging concerns.