Mercedes -- EVs -- Profit Margins Not Provided -- September, 2022, and 3Q22

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Mercedes-Benz Cars reports 520,100 global car sales during the third quarter of 2022, which is 20% more than a year ago. The number includes 517,800 Mercedes-Benz Passenger Cars (up 21%) and a small number of vans.

The German manufacturer clearly is recovering from the weaker first part of the year.

The most important thing for us is that Mercedes-Benz's all-electric car sales more than doubled in Q3 to 30,000. That's almost 6% of the total volume.

[Profit margins unstated; compared to ICE profit margins, also unstated.]

September was an especially strong month, which brought a new record of 13,100 BEVs, including 3,400 Mercedes-Benz EQBs.

Overall, plug-in electric car sales (BEVs and PHEVs) in Q3 amounted to 75,900 (up 23% year-over-year), which is nearly 15% of the total volume. In Europe, the xEV share is much higher, at 34%.

Mercedes-Benz global plug-in car sales in Q3 2022 (preliminary numbers, including smart BEVs):

BEVs (excl. smart): 30,000 (up 115% from 14,000 a year ago) including 5,400 EQS and 3,500 EQE

PHEVs: 45,900

Total plug-ins: 75,900 (up 23%) and close to 15% share

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McKinsey -- September 2021

Link here.

However, the study points out that there is a problem: today, most OEMs do not make a profit from the sale of EVs. In fact, these vehicles often cost $12,000 more to produce than comparable vehicles powered by internal combustion engines (ICEs) in the small- to midsize car segment and the small-utility-vehicle segment.

What is more, carmakers often struggle to recoup those costs through pricing alone.

The result: apart from a few premium models, OEMs stand to lose money on almost every EV sold, which is clearly unsustainable.