Mercedes-Benz Q1 Sales Sink 6% as Chinese Market Collapse Offsets Global Gains

Mercedes-Benz reports a 6% Q1 sales dip, as a 27% collapse in China offsets growth in the US and Europe. 2026 labeled a transition year for the brand.

By: AXL Media

Published: Apr 9, 2026, 11:31 AM EDT

Source: Information for this report was sourced from Anadolu Ajansı

China Market Erosion Drags Down Global Performance

Mercedes-Benz faces a challenging start to 2026, primarily driven by a significant contraction in its largest and most profitable market. Total group deliveries fell to 499,700 vehicles between January and March, down from the same period last year. The core Mercedes-Benz Cars division bore the brunt of this decline, dropping 6% to 419,400 units. The most jarring figure emerged from China, where sales plummeted 27% to 111,600 units. Company executives have labeled 2026 a "transition year" for the region, citing a perfect storm of macroeconomic uncertainty, aggressive price wars from domestic electric vehicle (EV) manufacturers like BYD and Xiaomi, and the planned phase-out of several entry-level models.

North American and European Markets Provide Buffer

Despite the downturn in Asia, the German automaker found significant success in Western markets. In the United States, sales surged 20% to 81,100 units, a growth attributed to robust demand for top-end luxury models and high-margin SUVs. This performance remained strong even in the face of fluctuating import tariffs and shifting trade policies. Similarly, the European market showed stability with a 7% increase in sales, surpassing 158,000 units. According to group reports, when the Chinese market is excluded from the data, Mercedes-Benz’s global sales actually saw a healthy 5% increase, suggesting the brand's appeal remains potent outside of the hyper-competitive Chinese EV landscape.

Electric Vehicle Momentum Amid Segment Volatility

The first quarter provided a silver lining in the battery-electric vehicle (BEV) segment, which saw global growth of 11%, totaling 50,400 units. This resurgence was particularly evident in Europe, where EV sales jumped 34% following the successful launch of the all-electric CLA and the new electric GLC. Mathias Geisen, Head of Sales, noted that the electric GLC generated more orders in its first three months than any other electric model in the company’s history. However, this growth in the electric segment was not enough to offset the broader decline in internal combustion engine sales and the contraction of the light commercial vehicle division, which saw van sales fall 3% to 80,300 units.