GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Mercedes-Benz Q2 sales fall, China competition intensifies - Finance news and analysis from Global Banking & Finance Review
Finance

Mercedes-Benz Q2 sales fall, China competition intensifies

Published by Global Banking & Finance Review

Posted on July 8, 2026

2 min read

· Last updated: July 8, 2026

Add as preferred source on Google

Mercedes-Benz Q2 Sales Drop 8% as Competition Heats Up in China Market

Mercedes-Benz Q2 2024 Sales Performance Overview

July 8 (Reuters) - German carmaker Mercedes-Benz said on Wednesday sales in its core car business continued to fall in the second quarter, declining 8% year-on-year due to intense competition in China.

Key Sales Figures and Regional Performance

Global Car Deliveries

• Car deliveries fell to 417,800 in the April-June period, the company said in a statement

China Market

• In China, the drop was 30% compared to the same period last year, with the company pointing to "an intensifying competitive environment and the timing of the company's current product ramp-ups"

U.S. and Europe Markets

• Second-quarter car sales rose by 10% in the U.S. and 4% in Europe

Electric Vehicle Sales and Industry Context

Battery-Electric Vehicle Growth

• Sales of battery-electric vehicles rose by 50% to 63,000 vehicles, which includes cars and vans

Competitive Landscape in China

• European carmakers face a cut-throat price war with local brands in China, the world's biggest auto market

Impact on Industry Rivals

• Last month, Mercedes' rival BMW slashed its 2026 core margin forecast to as low as 1%, citing difficulties in China

(Reporting by Danny Callaghan and Rachel More; editing by Linda Pasquini)

Key Takeaways

  • Q2 global car deliveries dropped 8% to 417,800 units, driven by a 30% sales collapse in China amid intensifying local competition and staggered product roll‑outs.
  • U.S. and European markets provided relief with sales growth of 10% and 4%, respectively; battery‑electric vehicle deliveries surged 50% to 63,000 units.
  • BMW also downgraded its 2026 core automotive EBIT margin to 1–3%, citing severe pressure from the China downturn and global instability, underscoring broader challenges for German premium automakers.

Frequently Asked Questions

Why did Mercedes-Benz Q2 sales decline in 2024?
Sales fell due to intense competition in China and product ramp-up timing, leading to an 8% year-on-year drop.
How much did Mercedes-Benz car deliveries drop in China?
Deliveries in China decreased by 30% compared to the same quarter last year.
Which markets saw sales growth for Mercedes-Benz in Q2?
Mercedes-Benz car sales rose by 10% in the U.S. and 4% in Europe during Q2.
What was the performance of Mercedes-Benz battery-electric vehicle sales?
Sales of battery-electric vehicles increased by 50% to 63,000 units, including cars and vans.
What challenges do European carmakers face in China?
European carmakers, including Mercedes-Benz, face a fierce price war with local Chinese brands in the world's largest auto market.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category