Mercedes Q1 sales down in tough ‘transition year’ for China business

[BERLIN] Mercedes-Benz reported a sales slump at the start of 2026, as the tough Chinese market continued to pressure the German premium carmaker during an overhaul of its model lineup to regain lost ground.

First-quarter sales in the company’s core car business fell 6 per cent to 419,400 vehicles globally from a year earlier, it said on Thursday (Apr 9).

While sales volumes grew by 7 per cent in Europe and 20 per cent in the US, this was not enough to offset a 27 per cent drop in China.

Both Mercedes and its rival BMW face a cut-throat price war in the country with Chinese brands in the premium segment.

Mercedes said 2026 would be a “transition year” for the brand in China, the world’s biggest car market.

The decline was partly driven by the phasing out of models in its entry segment ahead of the launch of new models.

SEE ALSO

Mercedes seeks to regain China luxury lead with new S-Class

Mercedes flags more margin pressure ahead, tough road in China

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

While the China slump widened in the first three months of 2026, the Stuttgart-based carmaker rebounded in the US with wholesale growth, following a 19 per cent drop in the fourth quarter.

It has also stocked up its dealer network for the coming months.

“Going forward, the company will place even greater focus on the localisation of products and value creation in this region,” Mercedes said of the US market, where steep import tariffs have hurt demand. REUTERS