While Mercedes-Benz has yet to release the second-quarter sales figures for the new S-Class, the cumulative data for the first half of the year paints a concerning picture. Combined deliveries of the S-Class and its related models fell by 23%, amounting to 33,400 vehicles sold. These numbers highlight a sustained decline that has led to significant operational changes within the company.
In response to these challenges, Mercedes-Benz has confirmed long-standing rumors regarding a reduction in S-Class production. A company spokesperson, speaking with Automobilwoche magazine, announced that production of the new S-Class at Factory 56 in Sindelfingen will be scaled back to a single shift. This decision reflects the plant’s ongoing underutilization, a direct consequence of the sharp drop in demand. The change to a single shift is set to take effect after the August break, with some workers being reassigned to other production tasks within the facility. Notably, the Sindelfingen plant also produces the all-electric Mercedes EQS, indicating a strategic shift in production focus.
The decline in S-Class sales comes at a time when Mercedes-Benz’s competitors are experiencing mixed fortunes. BMW, for instance, has managed to buck the trend with a notable increase in sales. The demand for the 7 Series and 8 Series rose by 11.4% in the first half of 2024, with 30,249 units sold by June—double the number of S-Class vehicles sold by Mercedes in the same timeframe. This stark contrast underscores the growing challenge Mercedes faces in maintaining the S-Class’s dominance in the luxury sedan market.
On the other hand, Audi has not fared as well. Sales of its D-Class models, including the flagship A8, fell by 16.5% during the same period, with only 8,487 units sold. Moreover, Audi’s production of these large sedans dropped dramatically by 46%, with just 5,788 units rolling off the assembly line between January and June. This decline highlights the broader challenges faced by luxury automakers in a shifting market landscape.
Amid these industry-wide changes, Mercedes-Benz is not standing still. The company is actively working on a mid-generation refresh of the S-Class, with significant investments being made to enhance the model’s appeal. In late June, CEO Ola Källenius revealed that Mercedes is spending “significantly more” on this refresh than it typically does for mid-cycle updates. This increased investment is part of a broader strategy to bolster the S-Class’s market position, even as the company recalibrates its ambitious goals in the electric vehicle segment. Interestingly, Mercedes has decided to allocate more resources to the development of combustion engines, signaling a more balanced approach in its future vehicle lineup.
The upcoming refresh is particularly noteworthy given the unique position of the S-Class in the luxury sedan market. Among the three large German sedans—the S-Class, BMW 7 Series, and Audi A8—the new S-Class remains the only model still available with a 12-cylinder engine, a feature exclusive to the opulent Maybach variant. This distinction adds to the S-Class’s allure, particularly among buyers who value traditional automotive power and prestige.
It’s also important to note the evolution of the new S-Class lineup in recent years. Until a few years ago, Mercedes offered both S-Class Coupe and Cabriolet models, catering to a niche but discerning segment of the luxury market. However, these models have since been discontinued, with Mercedes shifting its focus to the new GT Coupe and SL models, which feature a 2+2 seating arrangement. This strategic move reflects the brand’s adaptation to changing consumer preferences and market demands.
