Berlin: German carmaker Mercedes-Benz Group announced a 6% year-on-year decrease in vehicle sales for the first quarter, primarily due to reduced demand in China and ongoing model transitions.

According to Anadolu Agency, Mercedes-Benz Group recorded total deliveries of 499,700 vehicles from January to March, marking a decline compared to the same period last year. The core Mercedes-Benz Cars division saw a similar 6% drop, with sales reaching 419,400 units.

China, recognized as the largest auto market globally, posed significant challenges for Mercedes-Benz. Sales in the region fell by 27% to 111,600 units, influenced by weak demand and fierce competition. The company identified 2026 as a ‘transition year’ for its China operations, with generational shifts in key models and the discontinuation of some existing models impacting performance. Notably, excluding China, global sales increased by 5%.

In contrast, the United States market showed robust performance, with sales rising 20% to 81,100 units, driven by strong demand for high-end models despite heightened import tariffs. European sales also grew by 7% to over 158,000 units, with electric vehicle sales surging 34% due to new model introductions.

However, sales of light commercial vehicles, specifically vans, declined by 3% to 80,300 units during the first quarter.

The company also highlighted that ongoing Middle East tensions adversely affected their first-quarter results, particularly in the Gulf countries, which are significant markets for Mercedes-Benz. The automaker remains optimistic about future sales bolstered by upcoming model launches but is vigilant about the potential impact of geopolitical developments, including the Middle East conflict, on global consumer sentiment.