Mercedes sales fall amid China's EV boom and tariffs
Kyiv • UNN
Global deliveries of Mercedes-Benz fell by 12% in the third quarter, totaling 525,300 vehicles. The decline was attributed to weak markets in China and the US, despite increased sales of electric vehicles and luxury SUVs.
Automaker Mercedes-Benz reported a drop in global deliveries, despite an increase in sales of electric vehicles and luxury SUVs, UNN reports with reference to Autoblog.
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Mercedes-Benz reported a sharp drop in sales in the third quarter: global deliveries fell by 12% year-on-year to 525,300 vehicles. The decline in sales was due to weakness in the Chinese and US markets, the brand's two largest markets. Passenger car sales fell to 441,500 units, and van sales fell by 8% to 83,800.
The company's management attributed the decline to tariffs, reduced consumer demand, and increased competition from Chinese automakers. Matthias Heizen, a member of the Mercedes-Benz board of directors for sales, stated that while results in Europe and the Middle East remained stable, "market conditions in China and the US were clearly challenging."
In China, once a locomotive of Mercedes' growth, sales fell by 27% compared to last year, as local electric vehicle brands such as BYD and NIO continue to undermine the German automaker's market share. In the US, deliveries fell by 17% amid increased inventory control and persistent tariff pressure. Mercedes reportedly carefully managed inventories to avoid an increase in import duties on European-made cars.
The decline contrasts with recent sales dynamics across the model line. Mercedes is actively expanding its SUV portfolio, signaling a shift from traditional compact cars to more profitable crossovers.
Despite the overall decline, Mercedes' electric vehicle sales showed some resilience. In the third quarter, the company sold about 42,600 electric vehicles, which is generally in line with last year's figures, and electric van deliveries almost doubled. Analysts note that Mercedes' top-end lineup, including AMG, Maybach, and G-Class models, performed better than the core segments.
This, as noted, is partly due to the growing demand for luxury off-road models, as evidenced by Mercedes' trademark applications, which suggest the development of new versions. The brand also appears to be intent on expanding the G-Class lineup, using the global popularity of its flagship crossover as a buffer against declines in other markets, the publication writes.
Mercedes is also actively investing in technology development to maintain competitiveness. The latest R&D expansion demonstrates a focus on lighting, safety, and sensor systems that can be used in future electric vehicle and autonomous vehicle platforms, the publication writes.