Mercedes-Benz Group AG is falling further behind in China, its largest market, where fierce competition and an ongoing price war are squeezing European carmakers.
Sales in China fell 10per cent to 152,800 vehicles in the first quarter compared to the same period a year earlier. The drop marks a sharp reversal from the 3per cent gain Mercedes achieved there in the last three months of 2024.
Like other European carmakers, Mercedes is under growing pressure in China from a surge of homegrown brands that are rapidly gaining ground in the premium and electric-vehicle segments. A 1per cent gain in the US helped counter the drop in China, though President Donald Trump’s introduction of new tariffs last week is expected to weigh on Mercedes’ sales there going forward.
Mercedes’ global car sales fell 4per cent in the first quarter of 2025 to 446,300 vehicles. Sales of its top-end cars declined 2per cent to 65,100 units.