Mercedes-Benz’s sales in China fell to their weakest level in nearly half a decade in July, underlining the scale of the challenge facing foreign luxury marques in the world’s most competitive car market.
The German automaker delivered 26,653 cars last month, more than 40% lower than in June, according to industry data from Dongchedi first reported by Yicai.
Excluding one other trough of about 36,000 vehicles, it was Mercedes’s lowest monthly tally since 2019.
The decline reflects both faltering demand and the intensifying price war that has engulfed China’s premium segment.
Having resisted deep discounting for years, Mercedes cut prices earlier this year by as much as 36% on certain C-Class models, equal to 120,000 yuan ($16,700). E-Class sedans were reduced by roughly 20%, or 100,000 yuan.
Even so, the company’s sales for the first six months of 2025 dropped 14% year on year. Analysts expect pressure to persist through the second half as Chinese competitors extend their lead in electrification.
Although the group halved prices of its compact EQA and EQB, July registrations amounted to only 103 and 233 units respectively.
At the Shanghai motor show in April, it unveiled an all-electric CLA built on a platform designed in China, due to reach showrooms over the next few months.
In total, Mercedes plans to introduce 36 new vehicles by 2027, of which 17 will be electric and seven targeted specifically at Chinese consumers.
Weakness in China has weighed on Mercedes’s global results.
Second-quarter sales of its Cars unit fell 9% to 453,700 vehicles, with deliveries down 14% in North America and 19% in China. The group has also flagged tariffs as a further drag on demand.
Chief executive Ola Källenius last week warned against the European Union’s proposal to ban the sale of CO₂-emitting cars from 2035, joining a chorus of industry concern. Tesla’s chief executive Elon Musk commented on X: “Just make good EVs!”
Mercedes has attempted to respond with lower-cost electrics. In early 2025 it launched the CLA sedan in the US, priced from $42,750, as a direct rival to Tesla’s Model 3.
According to Motor Intelligence estimates, Mercedes sold 31,540 vehicles in the US last month, including both its ICE and electric models.
