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Mercedes-Benz Faces 8% Drop in Q2 Sales Amidst Weak Demand in China

Stuttgart: Mercedes-Benz Cars' global deliveries experienced an 8% decline year-on-year in the second quarter, primarily due to a significant drop in demand from China, despite witnessing growth in Europe and North America.

According to Anadolu Agency, the German automaker reported sales of 417,800 cars from April to June. Total sales for the Mercedes-Benz Group, which includes vans, decreased by 6% to 511,900 units. The company highlighted that sales outside China saw a 3% increase for cars and vans combined, bolstered by stronger demand in key Western markets and the introduction of new models.

China emerged as the primary factor behind the overall sales decline, with Mercedes-Benz Cars deliveries in the country plummeting by 30% to 98,600 vehicles. The company attributed this downturn to a weaker overall market, cautious consumer sentiment, intense competition, and the timing of current product ramp-ups.

Conversely, Mercedes-Benz Cars sales in Europe rose by 4% to 166,400 units, including a 6% increase in Germany, where 56,000 vehicles were delivered. North American sales saw a 13% increase, with US deliveries rising by 10% to 81,900 vehicles.

On a more positive note, the company's battery-electric vehicle sales showed promising growth. Mercedes-Benz Cars sold 52,900 fully electric vehicles globally in the second quarter, marking a 51% increase from the previous year. In Europe, sales of fully electric cars surged by 87% to 43,500 units, raising the battery-electric vehicle (BEV) share to 26%. Group-wide battery-electric vehicle sales, including vans, increased by 50% to 63,000 units.

Mercedes-Benz Vans sales remained stable at 94,100 units in the second quarter, supported by growth in Europe and North America, while electric van sales jumped by 46%. The results reflect the ongoing challenges faced by Germany's premium automakers, including weaker demand in China and stronger local competition, particularly in the electric and high-end segments.

Looking ahead, Mercedes-Benz expressed optimism, expecting to sell more cars and vans in the second half of the year compared to the first half, as new models reach markets and order books remain well-filled.