Mercedes Sales Decline As Computer Chip Shortages Hit Hard

Even if it may seem like things are returning to normal, Covid-19's long-term effects on the automotive sector are still very much a concern. Mercedes-Benz has already disclosed that its sales for the three months ending in June 2022 were negatively impacted by lockdowns brought on by the pandemic and a scarcity of some crucial components.

Between April and June, the German automaker's sales decreased by 16%, according to Bloomberg. The company reported that deliveries were down 10% in Europe and 25% in China. Sales in North America decreased by 3% throughout that time. Bloomberg states

Between April and June, the German automaker's sales decreased by 16%, according to Bloomberg. The firm said its deliveries were down 25 percent in China and 10 percent in Europe. Sales in North America were down three percent during the period,

“Ongoing supply-chain problems could jeopardize Mercedes’s plan to cut back on entry-level vehicles in order to focus on higher-end cars that deliver bigger profits. Mercedes said a dearth of chips contributed to a 16% decline in sales for the top-end luxury category.

“EV sales were a bright spot in Mercedes’s report, with its EQ sales nearly doubling to 23,500 units compared to the same period last year. The first half of the year saw the brand’s EV sales rising to 45,400 units – an increase of 134%.” – Bloomberg

Britta Seeger, a member of the management board in charge of marketing and sales, said in a statement released by Mercedes Benz: "The electric ramp up is gaining traction: Sales of our completely electric vehicles climbed by more than 90% in Q2 and even 134% in the first half of 2022. It demonstrates that we provide customers with enticing electric automobiles that they want.