Finance
Mercedes Aims for up to 600,000 Unit Sales per Year in China in Mid Term, CFO Says
Published by Global Banking & Finance Review®
Posted on April 16, 2026
2 min readLast updated: April 16, 2026
Add as preferred source on GoogleQuick Summary
Mercedes‑Benz aims to sell 500,000–600,000 vehicles annually in China mid‑term, targeting high single‑digit margins. This comes amid a 19 % sales drop in China in 2025 and ongoing efforts to cut costs and boost localisation.
Mercedes investors warn luxury focus could hamper China recovery
Investor Concerns and Mercedes-Benz's Strategy in China
By Rachel More and Ilona Wissenbach
April 16 (Reuters) - Investors pressed Mercedes-Benz on its recovery plans for China on Thursday, warning that a luxury-focused strategy could hurt the German brand's chances of winning back Chinese consumers after a slump in sales.
Competition in the Chinese Market
Like rivals BMW and Audi, Mercedes has lost ground in the world's largest car market, struggling to keep pace with fast-moving local brands such as BYD, NIO and Li Auto, which offer tech-laden premium cars at lower prices.
Shareholder Criticism and Technology Demands
At Mercedes' annual shareholders' meeting on Thursday, investors questioned whether the Stuttgart-based automaker was doing enough to meet Chinese standards on technology.
Investor Perspectives
"Customers in China today buy innovation, not tradition. Anyone who isn't a technological leader there becomes a status symbol of a bygone era," said Moritz Kronenberger of Union Investment, a top-20 shareholder with about $276 million worth of stock.
Luxury Strategy Under Scrutiny
Kronenberger criticised Mercedes for developing new products from its luxury S-class range downwards, rather than adopting a more mass-market approach like its Chinese competitors.
Tanja Bauer of Deka Investment, which owns $191 million worth of Mercedes stock, also flagged "the risk of an overly narrow focus on luxury" in her remarks to the meeting.
Mercedes-Benz's Response and Future Plans
Mercedes plans to overhaul its lineup in China with seven new models by 2027 and the rollout of advanced driving assistance systems co-developed with Chinese tech firm Momenta.
CEO and Leadership Statements
CEO Ola Kaellenius said this marked the biggest product and technology offensive in the company's history, backed by local development and partnerships.
"This enables us to accelerate innovations tailored to the needs of Chinese customers," Kaellenius said.
Sales Performance and Targets
Mercedes' sales in China fell 19% last year to 552,000 vehicles. The decline accelerated to 27% in the first quarter of 2026.
Financial Goals
"We have clearly defined, ambitious yet realistic goals for China," finance chief Harald Wilhelm told investors. "In the medium term, we are aiming for annual sales of 500,000 to 600,000 vehicles in China."
(Reporting by Ilona Wissenbach and Rachel More. Writing by Linda Pasquini. Editing by Madeline Chambers and Mark Potter)
Key Takeaways
- •Mercedes‑Benz CFO Harald Wilhelm announced a medium‑term China sales target of 500,000–600,000 units per year, aiming for high single‑digit profit margins. (investing.com)
- •In 2025, China sales fell by 19 % to around 575,000 units, pressuring overall performance. (chinaevhome.com)
- •To support margins and growth, Mercedes is pushing cost discipline, localisation (‘in China for China’) and launching over 15 new or refreshed models. (chinaevhome.com)
References
Frequently Asked Questions about Mercedes aims for up to 600,000 unit sales per year in China in mid term, CFO says
1What is Mercedes-Benz's sales target for China in the medium term?
Mercedes-Benz aims to sell between 500,000 and 600,000 vehicles annually in China in the medium term.
2Who announced Mercedes-Benz's sales targets for China?
Mercedes-Benz's Chief Financial Officer Harald Wilhelm announced the sales targets.
3What profit margins does Mercedes-Benz expect in China?
Mercedes-Benz expects to achieve high single-digit margins in the Chinese market.
4Where were the Mercedes-Benz sales targets for China discussed?
The targets were discussed at the company's annual meeting with shareholders.
