Berlin, April 9, 2026 — Mercedes-Benz Group AG reported a drop in global vehicle sales in the first quarter of 2026, as continued weakness in China weighed heavily on performance during what the company described as a “transition year.”
The German luxury carmaker said total car sales fell 6% year-over-year to around 419,400 units. Strong growth in other regions was not enough to offset the sharp decline in China.
China Dragging Overall Performance
Sales in China dropped significantly by 27%, reflecting growing pressure from domestic competitors in the premium vehicle segment. Both Mercedes-Benz and Bayerische Motoren Werke AG are facing intense competition from local brands offering high-quality vehicles at more competitive prices.
The company also noted that part of the decline was due to the phase-out of certain entry-level models, as it prepares to introduce a new generation of vehicles tailored to the Chinese market.
Mercedes-Benz described 2026 as a rebuilding phase in China, with efforts focused on regaining market share and strengthening its position.
Strong Growth in the U.S. and Europe
Despite challenges in China, the company recorded solid growth in other major markets. Sales increased by 7% in Europe and jumped by 20% in the United States.
The recovery in the U.S. comes after weaker performance in late 2025, with the company increasing inventory at dealerships to meet expected demand.
Strategy Shift Toward Localization
Looking ahead, Mercedes-Benz plans to focus more on local production and value creation, particularly in the United States. This strategy is aimed at reducing the impact of import tariffs and improving competitiveness in key markets.
By adapting its operations to regional conditions, the company hopes to maintain growth despite global uncertainties.
Outlook: A Year of Transition
Mercedes-Benz emphasized that the current decline reflects a broader transformation strategy, including updates to its model lineup and adjustments to changing market dynamics.
While short-term challenges—especially in China—are expected to continue, the company remains focused on long-term growth through innovation, strategic investments, and a refreshed product portfolio.
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