In the first quarter of this year, the leading luxury car brand in the traditional market, Mercedes-Benz, saw a 20% increase in sales in the US market and a 7% increase in the European market, while experiencing a sharp 27% decline in the Chinese market. The growth in the European and American markets was unable to offset the significant gap left in the Chinese market.
Data indicates that Mercedes-Benz’s global sales volume in the first quarter of the year was 419,400 vehicles, a 6% decrease compared to the same period last year.
Specifically, Mercedes-Benz experienced a 27% decrease in sales in the Chinese market. Despite a 20% increase in the US market and a 7% increase in Europe (9% in Germany), it was challenging to fully compensate for the enormous market gap left in the Chinese region.
Mercedes-Benz officials stated that 2026 would be a transitional year for the brand in the Chinese market. One of the reasons for the declining sales is that their entry-level models are in a phase of transitioning from old to new. The older models are gradually being phased out, while the new generation products have not yet been fully rolled out.
It is noteworthy that Mercedes-Benz is experiencing a strong rebound in the US market. After a 19% decline in wholesale sales in the fourth quarter of last year, in the first quarter of this year, Mercedes-Benz achieved a better-than-expected 20% growth in the US market, contrasting sharply with the sluggish performance in the Chinese market.
Previously, financial commentator Xiao Yi analyzed in an article for Dajiyuan that the root of Mercedes-Benz’s crisis lies in strategic mistakes: clinging to the advantage of internal combustion engines and wavering in the transition to electrification. Faced with barriers like Chinese subsidies (which disrupt pricing) and the Trump tariff war (which raises costs), there is a lack of swift decision-making.
He noted that Mercedes-Benz’s crisis is not an isolated case but a reflection of the collective dilemma faced by traditional luxury car companies. The severe pressure of EU carbon emission regulations, the rise of local new energy vehicles (EVs) in China with massive government subsidies, the ebbing tide of globalization, and geopolitical risks are all contributing to Mercedes-Benz’s difficulties.