Mercedes Sales Decline in First Quarter of 2026

(MENAFN) German automaker Mercedes-Benz Group reported a decline in vehicle sales for the first quarter, as weakening demand in China and an ongoing model transition cycle weighed on performance.

The company said total deliveries reached 499,700 vehicles between January and March, marking a 6% decrease compared with the same period a year earlier.

Sales within its core passenger car unit, Mercedes-Benz Cars, mirrored the broader trend, also falling 6% to 419,400 units.

China remained the most challenging market for the automaker. Deliveries in the country plunged 27% to 111,600 vehicles, reflecting subdued demand and intensifying competition in the world’s largest auto market.

The company said 2026 is a “transition year” for its China business, with generational changes in key models and the phase-out of some existing models weighing on performance. Excluding China, global sales rose 5%.

In contrast, the U.S. market showed strong momentum. Sales climbed 20% to 81,100 units despite the impact of higher import tariffs, supported by robust demand for premium models.

European performance was also positive, with sales increasing 7% to more than 158,000 vehicles. Electric vehicle demand stood out, surging 34% following the introduction of new models.

Meanwhile, sales of light commercial vehicles declined, with van deliveries slipping 3% to 80,300 units during the quarter.

Middle East tensions pressure outlook
The automaker noted that geopolitical instability also affected its results. Ongoing conflict in the Middle East weighed on first-quarter sales, particularly in Gulf markets, which are a key region for the brand.

Mercedes-Benz added that while upcoming model launches are expected to support sales in coming quarters, it is closely monitoring geopolitical developments, including the Middle East conflict, and their potential impact on global consumer sentiment.

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