Mercedes-Benz Q3 Car Sales Fall 8% as China Weakness Deepens, EV Sales Jump 52%

Mercedes-Benz reported an 8% year-on-year decline in third-quarter car deliveries as weak demand in China continued to weigh on its core business, even as electric-vehicle sales jumped sharply.

The split result captures a major challenge for global automakers: traditional luxury demand is under pressure in China, while the transition toward battery-electric vehicles continues to accelerate.

Mercedes deliveries fall to 407,200 cars

The German automaker delivered 407,200 cars in the July-to-September quarter. Sales in China fell 31% to 86,800 vehicles, making the country the biggest source of weakness.

Mercedes’ high-end segment also struggled. Top-End vehicle deliveries dropped 21% as weaker Chinese demand combined with model changeovers.

U.S. and European sales were stronger

The company’s performance was not weak everywhere. Car sales rose 6% in the United States and 5% in Europe.

That regional contrast matters because China has historically been one of the most important profit centers for German luxury automakers. A prolonged slowdown there could force manufacturers to rebalance production and product strategies.

EV sales jump 52%

Group sales of battery-electric vehicles, including cars and vans, increased 52% to 78,100 units.

The EV growth suggests Mercedes is gaining traction with electric models even while the broader car business remains under pressure. It also shows why investors increasingly need to look beyond total unit sales and examine the mix between combustion, hybrid and electric vehicles.

China is becoming more difficult for foreign automakers

Chinese EV makers have expanded rapidly with competitive pricing, advanced software and frequent model launches. Foreign luxury brands face stronger local rivals than they did a few years ago.

Price competition can also pressure margins. Premium automakers traditionally depend on brand strength and high per-vehicle profits, so discounting can have a larger financial impact than modest changes in volume might suggest.

Why the result matters for the wider EV sector

The Mercedes numbers come as smaller EV companies are also adjusting production and inventory. Our recent coverage of Lucid’s third-quarter deliveries showed the opposite side of the market: young EV manufacturers are trying to control cash burn while established automakers manage a difficult transition from combustion vehicles.

What to watch next

Investors will focus on Mercedes’ pricing in China, the profitability of EV sales, progress in the Top-End segment and management’s production outlook. The next major question is whether electric-vehicle momentum can offset continued weakness in the company’s largest Asian market.

Source

Based on reporting from Reuters.