Mercedes car sales jump defying growing global economic gloom

STUTTGART: Mercedes-Benz AG sales rose by more than a fifth during the third quarter, piercing through ongoing supply-chain bottlenecks and an increasingly negative economic outlook as consumers battle surging inflation.

The luxury-auto maker delivered 517,800 vehicles globally in the third quarter, up 21% compared to the same period a year ago with demand in China leading strong growth in all key regions, Mercedes said Tuesday.

In Europe, where multiplying energy bills are affecting buyers, deliveries still rose some 18% as automakers catch up on orders after months of severe shortages of semiconductors hampering output.

“Global demand for Mercedes-Benz vehicles remains robust, even as energy supply uncertainties in Europe and the ongoing covid challenges in Asia continue to impact consumer sentiment,” Mercedes said in a statement.

While many automakers still report firm demand, consumer confidence measures in major markets are around record lows amid surging inflation.

Central banks in Europe, the UK and the US are raising interest rates in a bid to tame price rises, moves that should reduce demand for big-ticket items like cars.

Key competitor BMW AG earlier this week reported quarterly sales that were almost flat compared to a year ago at just under 588,000.

For fully-electric cars, Mercedes said deliveries more than doubled to 30,000 vehicles.