German automaker Mercedes-Benz announced on Wednesday that deliveries in its core passenger-car business fell 8% in the second quarter compared with the same period last year. The company reported 417,800 car deliveries in the April-June quarter.
Geographic performance
- China was the weakest market, where deliveries dropped 30% year-on-year. Mercedes pointed to an intensifying competitive environment in China and to the timing of the company’s current product ramp-ups as contributors to the decline.
- By contrast, sales in the U.S. rose by 10% in the second quarter.
- European car sales increased by 4% in the same period.
Electrified vehicle performance
Sales of battery-electric vehicles - including cars and vans - rose by 50% in the quarter, reaching 63,000 vehicles. The company presented the increase in electric-vehicle deliveries alongside overall declines in conventional car volumes.
Competitive context
Mercedes-Benz highlighted a tougher competitive landscape in China as a key factor behind its weaker overall delivery numbers. The company specifically referenced intensified local competition and the timing of its product roll-outs as affecting volumes in the market.
The report also noted that European automakers more broadly are facing aggressive pricing pressure from local brands in China, described as the world’s largest auto market. The article cited a recent action by rival BMW, which last month cut its 2026 core margin forecast to as low as 1%, explicitly pointing to challenges in China.
Takeaway
Mercedes-Benz’s second-quarter results show a split performance across regions. While the U.S. and Europe recorded year-on-year gains in car deliveries, a steep 30% decline in China drove an overall 8% drop in deliveries. At the same time, electrified vehicle deliveries expanded substantially, with battery-electric volumes up 50% to 63,000 units.