Mercedes-Benz sales drop 6% as China deliveries plunge 27%

Mercedes-Benz Group AG’s car sales fell in the first quarter due to an accelerating decline in China, where local brands are pushing deeper into the luxury segment.

The manufacturer’s global deliveries dropped 6% to 499,700 vehicles, as a worsening slump in China outweighed gains in Europe and the US.

Its sales in the world’s largest auto market tumbled 27% — a steeper fall than the 19% decline in the fourth quarter.
Demand for high-end vehicles in China remains subdued, while domestic brands continue to gain share.

Mercedes has refreshed key models, including its flagship S-Class, to fend off competition from rivals such as Huawei Technologies Co.’s Maextro S800 sedan.

The German company previously warned that margins will remain under pressure this year.

There were bright spots elsewhere. Electric-vehicle sales picked up in Europe, driven by strong demand in Germany for the battery-powered CLA sedan, which was named Europe’s Car of the Year 2026.

The model is an early test for Mercedes’ product offensive, with about 40 new vehicles planned in the coming years.