China deliveries dropped 30% in the April-June period, even as battery-electric vehicle sales rose 50% globally
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Mercedes-Benz reported on Wednesday that global car deliveries fell 8% in the second quarter compared with the same period a year earlier, with a deepening slump in China responsible for much of the decline. Across the quarter, the automaker handed over 417,800 vehicles to customers.
Chinese deliveries were down 30% from a year ago, a decline the automaker attributed to what it called "an intensifying competitive environment and the timing of the company's current product ramp-ups." Mercedes-Benz stock fell as much as 3.7% in Frankfurt trading.
Results outside China were considerably stronger. North America sales rose 13%, while European deliveries grew 4%. Fully electric models — counting both cars and vans — accounted for 63,000 deliveries, a 50% jump from the prior-year period, buoyed in part by European appetite for those vehicles. The automaker's highest-end lineup saw a 10% drop in deliveries, a result the company tied to scheduled transitions between model generations and when particular vehicles became available. Deliveries of the G-Class gained 3%.
Looking ahead to the back half of 2026, Mercedes-Benz plans to bring a number of China-specific vehicles to that market, among them the long-wheelbase electric GLC L SUV. Demand signals for the new S-Class are also encouraging in Europe, where the sedan's order books are described as strong through year-end.
The second-quarter results extend a pattern that has pressured the German automaker throughout 2026. In the first quarter, Mercedes-Benz reported a 6% global sales decline, with China down 27%, as domestic brands encroached on the premium segment. First-quarter earnings before interest and taxes fell 17% to €1.9 billion, and the carmaking unit's adjusted operating margin compressed to 4.1% from 7.3% a year earlier.
Across the German luxury segment, a prolonged real estate crisis in China has hollowed out the purchasing power of wealthier consumers, leaving brands like Mercedes, Porsche, and Audi disproportionately exposed as homegrown rivals press into the premium space. BMW last month warned that its automotive segment profit margin could fall as low as 1% due to weakness in China.
Mercedes-Benz has also drawn scrutiny in the U.S., where legislation introduced in the House of Representatives could affect the company's ability to manufacture and sell vehicles domestically. Chinese government-owned BAIC holds a 9.98% stake in the automaker.
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