Mercedes-Benz Q2 Car Sales Decline 8%

Mercedes-Benz reported an 8 per cent year-on-year decline in global passenger vehicle (PV) deliveries during the second quarter (Q2), as fierce competition in China continued to weigh on its performance in the world's largest automotive market.

The German carmaker delivered 417,800 passenger cars globally between April and June, according to a statement issued on Wednesday, according to news agency Reuters.

Sales in China fell 30 per cent compared with the same period in 2025. The automaker attributed the decline to "an intensifying competitive environment and the timing of the company's current product ramp-ups."

The weakness in China contrasted with stronger performances in other key markets. Passenger car sales increased 10 per cent in the United States and 4 per cent in Europe during the quarter.

Mercedes-Benz also reported strong momentum in its electric vehicle business. Sales of battery-electric vehicles, including both cars and vans, rose 50 per cent year-on-year to 63,000 units during the quarter.

European luxury car manufacturers continue to face intense pricing pressure in China as domestic brands expand their presence and compete aggressively for market share.

The challenging market conditions have also impacted other global automakers. Last month, BMW lowered its 2026 core margin forecast to as low as 1 per cent, citing continued difficulties in the Chinese market.