Mercedes says 'brutal' EV market will pressure car sales margins

The Mercedes-Benz logo. - REUTERS/Athit Perawongmetha

BERLIN: Mercedes-Benz said a "brutal" electric vehicle market of heavy price cuts and supply chain issues meant it would likely hit the lower end of its 12-14% adjusted return on sales forecast for the cars division, as third-quarter earnings fell.

The luxury carmaker said it remained committed to its EV targets, but could bolster earnings with better returns from its combustion engine portfolio if margins on EVs remained lower than previously assumed, its chief financial officer said on an analyst call.