Mercedes-Benz Q3 Sales Fall 12% on China, US Demand Weakness

Mercedes-Benz Group experienced a 12% decline in third-quarter 2025 sales to 525,300 vehicles, primarily due to steep drops in China and the United States, where sales fell 27% and 17% respectively amid economic challenges and tariff-related impacts. Despite these setbacks, sales in Europe, South America, and Gulf States showed growth, with Europe posting a 2% rise and South America surging 45%, helping to partially offset the global decline. The company reported stable to growing demand for its top-end luxury models, including an overall 10% increase in sales of high-margin vehicles such as the S-Class, G-Class, and Mercedes-AMG models, indicating resilience in the premium segment. Battery electric vehicle (BEV) sales rose 9% year-over-year to 51,200 units, supported by the introduction of the all-electric CLA, reflecting ongoing progress in Mercedes-Benz's electrification strategy. However, overall sales remain pressured by rising competition from local manufacturers in China and tariff uncertainties in the U.S., impacting imported vehicle demand. Mercedes-Benz continues to navigate these market headwinds while focusing on expanding its electric and luxury offerings to sustain growth.