Mercedes-Benz Q2 China Sales Tumble 30%, Global EV Business Stands Out

In the second quarter, Mercedes-Benz sales in China plunged 30% year-on-year, a decline steeper than that of the overall market. The prolonged downturn in China's real estate market has weakened consumer confidence and dented demand for luxury cars.

In the first half of 2026, the Mercedes-Benz Group generated revenue of EUR 63.663 billion, down 4% year-on-year; earnings before interest and taxes (EBIT) stood at EUR 3.451 billion, down 3%; and net profit was EUR 2.519 billion, down 6%. In the second quarter alone, group revenue was EUR 32.061 billion, down 3% year-on-year; EBIT was EUR 1.547 billion, up 22%; and net profit reached EUR 1.086 billion, up 13%.

In the first half, global sales of Mercedes-Benz passenger cars totaled 837,200 units, a decline of 7% year-on-year. By region, European sales rose 5%, North American sales increased 15%, and Asian sales fell 25%. In China, the world's largest single market, first-half sales reached only 210,200 units, a sharp drop of 28% year-on-year. Revenue from China was EUR 7.01 billion, down 19.1% year-on-year, far exceeding the overall group revenue decline. European and North American revenue grew 0.6% and 1.1% respectively, but were insufficient to offset the weakness in China and the broader Asian market.

The electric vehicle business was the highlight of the first half. Mercedes-Benz sold 168,900 new-energy vehicles, accounting for 21.2% of total passenger car sales. Among them, battery-electric vehicles (BEV) reached 103,000 units, up 45% year-on-year, mainly benefiting from market demand following the launch of new models such as the CLA, GLC, and GLB. Plug-in hybrid electric vehicles (PHEV) sold 58,600 units, down 34% year-on-year, affected by the discontinuation of certain models in China and the removal of tax incentives in the United States.