Mercedes-Benz Group AG reported an 8% year-on-year decline in sales from its core car business in the second quarter, dragged down by intensifying competition in China, the world’s largest automotive market.
According to Reuters, the German automaker delivered 417,800 cars between April and June, with China sales plunging 30% from a year earlier as the company cited a more challenging competitive environment and the timing of current product rollouts.
Mercedes-Benz has been facing mounting pressure from local Chinese brands amid an aggressive price war in the country’s electric vehicle and premium automotive segments, forcing global automakers to adjust strategies in a highly competitive market.
Despite the decline in China, the company recorded stronger performances in other key markets, with vehicle sales rising 10% in the US and 4% in Europe during the quarter.
The automaker also saw continued momentum in electrified vehicles, with sales of battery-electric cars and vans climbing 50% to 63,000 units in the quarter.
The challenging Chinese market has also weighed on other European luxury carmakers, with BMW Group recently cutting its 2026 core margin outlook, citing ongoing difficulties in China.
