Mercedes-Benz's core car business delivered 407,200 vehicles worldwide in the third quarter, down 8% from a year earlier, with a 31% plunge in China dragging down the global total, according to Reuters figures cited by Chinese outlet Kuaikeji.
China deliveries fell to 86,800 units in the quarter, far outpacing declines in other regions. Mercedes blamed a challenging market environment, weakening demand and the transition period for several models undergoing generational changes.
Premium segment hit hardest
The high-end model segment suffered an even sharper drop, with global deliveries down 21% to 53,900 units in the third quarter. Mercedes said this decline was also mainly due to weak demand in China and model changeovers. The premium segment's slump may hit Mercedes' profitability more deeply than the headline sales figures suggest.
Other regions fared better. US sales rose 6% year on year in the third quarter, while Europe posted a 5% gain. Without the China drag, Mercedes' global performance would have looked far less dire.
BEV sales a rare bright spot
Electrification offered one of the few positives for the quarter. The Mercedes-Benz Group, including both passenger cars and commercial vehicles, sold 78,100 battery-electric vehicles (BEVs) in the third quarter, up 52% year on year, signalling that its electric transition is accelerating.
China was once Mercedes' largest single market, but it has come under sustained pressure in recent quarters. The rise of domestic brands with strong smart-driving and electrification capabilities is steadily eating into the market share of traditional luxury marques. Mercedes now faces a twin squeeze between a shrinking combustion-engine base and an electric transition that has not yet fully paid off, according to Kuaikeji.
The German automaker's challenges in China mirror a broader trend: local EV makers such as BYD, Nio and Xpeng are increasingly competing at the premium end, offering advanced driver assistance and rapid charging at price points that undercut legacy luxury brands.
