Mercedes-Benz cites weak China sales amid tough market and competition
The carmaker's China deliveries fell 28% in the first half of 2026 to 210,245 vehicles, according to a Mercedes-Benz report cited by Invezz
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Mercedes-Benz said its China sales have been hit by difficult market conditions and strong competition in the passenger segment.
According to a Mercedes-Benz report cited by Yahoo Finance, China deliveries fell 30% year-on-year in the second quarter of 2026, which the company linked to intensifying competition and the timing of new product launches. First-quarter deliveries in China were down 27% from a year earlier, part of a 6% decline in global sales over that period. Separately, Mercedes-Benz reported that first-half 2026 China sales dropped 28% to 210,245 vehicles, citing intense competition, weak demand and model changeovers, according to a report by Invezz.
Mercedes-Benz has since cut its 2026 sales outlook for both its passenger car business and the wider group, now expecting unit sales slightly below 2025 levels rather than in line with them, according to Yahoo Finance. Management board chairman Ola Källenius said electric vehicle sales rose 51% and that battery-electric order intake in Europe more than doubled in the second quarter, with the second half of the year focused on new models and the company's cost position.
The acknowledgment of weak China sales sits awkwardly alongside Beijing's recent welcoming stance toward European carmakers and a separate effort to shield Mercedes-Benz from a vehicle ban. Political goodwill and legislative carve-outs do not address the core problem, which is domestic competition eating into the premium segment where Mercedes-Benz has traditionally been strong. A tie-up with Wayve aimed at closing the artificial intelligence gap with Chinese rivals is a multi-year bet and offers no near-term offset in a market the company itself describes as difficult. The sales figures shift attention from external policy risk back to execution inside China's passenger market.