Mercedes Sales Decreased In The First Quarter As A Result Of China’s Declining Business

Mercedes-Benz sales fell 6% in the first quarter due to reduced operations in China, the company said. Mercedes sold 499,700 passenger cars and vans between January and March, with car sales also down 6% to 419,400.

That was largely due to weak car sales in China, which fell 27% “amid model cycle effects, macroeconomic uncertainties and challenging market conditions”, Mercedes said.

Excluding China, car sales rose 5%, thanks to growth in the US and European markets, according to the Stuttgart-based marque.

“While recent model launches support sales forecasts in the coming quarters, the company continues to closely monitor the geopolitical environment, the conflict in the Middle East and its potential impact on global consumer sentiment,” Mercedes said.

Sales of battery electric vehicles fell by 11% at the group level, while sales of vans fell by 3% to 80,300 units.

German car manufacturers, long considered the backbone of Europe’s largest economy, have been facing strong domestic competition in the Chinese market for some time. They are also struggling to catch up in the race to switch to electromobility.

“The first quarter was marked by sales growth outside of China, with an exceptional market response to our newly launched models,” said Mercedes Board Member Mathias Geisen.

The new GLC electric model especially helped in the first quarter, he noted.

“As the availability of our new products increases, we remain very focused on translating strong customer interest into overall sales momentum in the coming months.”

Mercedes car sales have been falling for years, falling 3% in 2024 before falling 9% last year.

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