Mercedes-Benz reported Wednesday that its core vehicle sales continued a downward trend in the second quarter, dropping 8% compared to the same period a year ago, largely driven by fierce competition in the Chinese market.
The German automaker delivered 417,800 cars during the April through June period, according to a company statement released July 8.
China proved to be the biggest drag on performance, where sales plummeted 30% year-over-year. The company attributed the steep decline to “an intensifying competitive environment and the timing of the company’s current product ramp-ups.”
Not all regions struggled, however. Mercedes-Benz posted a 10% sales increase in the United States and a 4% gain across Europe during the same timeframe.
One bright spot in the report was battery-electric vehicles, which saw sales jump 50% to 63,000 units — a figure that includes both cars and vans.
The challenges Mercedes-Benz faces in China are not unique. European automakers broadly are caught in an aggressive price war with homegrown Chinese brands in what is considered the world’s largest automobile market.
The pressure in China has hit others in the industry as well. Rival automaker BMW recently slashed its 2026 core profit margin forecast to as low as 1%, also pointing to difficulties in the Chinese market.
