Mercedes-Benz Q2 car sales fall 8% as China drops 30%

Mercedes-Benz reported an 8% decline in sales for its core car business in the second quarter of 2026, as the German automaker faces mounting pressure from Chinese rivals in one of its most important markets.

China Drives the Downturn

The company said on Wednesday that deliveries in China dropped 30% compared to the same period last year, representing the steepest regional decline in the quarter. The luxury carmaker attributed the fall to intensifying competition from domestic Chinese brands, which have rapidly expanded their presence in premium segments.reuters+2

The results extend a pattern that has plagued Mercedes-Benz for several quarters. In the second quarter of 2025, the company reported a 19% sales decline in China, meaning the deterioration has accelerated considerably year over year.finance.yahoo

EV Sales Provide a Bright Spot

Despite the broader sales decline, Mercedes-Benz reported that electric vehicle sales rose 50% in the quarter, suggesting the company's electrification push is gaining traction even as overall volumes contract. The growth in battery-powered models comes after a difficult period for the company's EV business, which saw an 18% decline in Q2 2025.globalbankingandfinance+1

Broader Market Pressures

The results arrive as European automakers broadly contend with a shifting competitive landscape in China, where domestic manufacturers like BYD have eroded the market share that German premium brands long took for granted. Mercedes-Benz's sales struggles in the region mirror challenges faced across the German auto industry, which has seen its once-dominant position in China steadily diminish.

In Europe and Germany, the company had fared better in recent periods, posting sales increases of 1% and 7% respectively in Q2 2025. Whether those gains held in the latest quarter remains to be detailed when the company releases its full financial results later this month.finance.yahoo