Published by Global Banking & Finance Review®
Posted on November 20, 2025
1 min readLast updated: January 20, 2026
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Mercedes-Benz faces tough competition in China. CEO Ola Kaellenius anticipates market consolidation but expects challenges to persist for years.
BERLIN (Reuters) -Mercedes-Benz is "not naive" in China where the German carmaker faces a tough couple of years and is battling to maintain its market share amid intense competition from local brands, CEO Ola Kaellenius said on Thursday.
While the executive expected consolidation in the Chinese market, where Mercedes faces competition from over 100 carmakers, he said this would take time, in a video interview at an industry conference in Berlin hosted by Automobilwoche.
"That will certainly take a while, but I think it has to happen. This means that I believe this high level of competition will remain for the next few years," Kaellenius said.
"We are not naive," he said, adding that the next few years in China would be "tough".
Mercedes saw its sales in China slump by 27% in the third quarter of this year. Its rival BMW, by comparison, saw sales stagnate in the world's largest car market during the same period.
(Reporting by Rachel MoreEditing by Madeline Chambers)
Market share refers to the percentage of an industry's sales that a particular company controls. It is a key indicator of a company's competitiveness and performance in the market.
A sales slump is a significant decline in sales revenue over a specific period. It can be caused by various factors, including increased competition, market changes, or economic downturns.
Consolidation in the market occurs when companies merge or acquire one another, reducing the number of competitors. This often leads to increased market power for the remaining companies.
Competition from local brands refers to the challenge established companies face from domestic businesses that may offer similar products or services, often at lower prices or with tailored features.
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