On July 7, Mercedes-Benz Group said its global sales of passenger cars and light commercial vehicles in the second quarter of this year were 547,100 units, down 9% year-on-year. Passenger car sales decreased 9% y/y to 453,700 units. The group’s demand in the US and Chinese markets has been frustrated by trade tensions caused by the Trump administration’s tariff policy, and Mercedes models face high import tariffs in both key markets.
In the second quarter, Mercedes-Benz was pureElectric vehicleSales decreased 24% y/y to 35,000 units. However, the company said that orders for the new CLA sedan based on the new pure electric platform, which is designed to optimize range, are gradually growing.
Despite the decline in sales, Mercedes-Benz shares rose slightly after the data was released. Industry analyst Marc-René Tonn said the sales performance was slightly better than the first quarter and slightly better than Mercedes-Benz’s expectations.
However, Mercedes-Benz’s second-quarter sales figures still highlight the growing impact of trade disputes on the brand, especially its models made in the United States and sold to China. The company manufactures large SUVs such as the GLS and GLE at its plant in Tuscaloosa, Alabama, USA, and exports them to China. After the United States raised tariffs on Chinese goods, the Chinese government retaliated by imposing a 10% tariff on models, including Mercedes-Benz’s American-made SUVs, which further dampened market demand.
In terms of regions, in the second quarter of this year, the Mercedes-Benz passenger car brand was in EuropeCar sales159,700 units, up 1% year-on-year, of which 52,800 units were sold in Germany, up 7% year-on-year; Vehicle sales in Asia were 189,200 units, down 16% year-on-year, with sales in China down 140,400 units, down 19% year-on-year. In North America, vehicle sales were 80,600 units, down 14% year-on-year; U.S. sales were 74,600 units, down 12% year-on-year; Vehicle sales in other regions were 24,200 units, up 24% year-on-year, mainly driven by sales in Turkey and South America.
The tariff policy has further exacerbated the structural decline of Western automakers in the Chinese market. At present, local Chinese brands led by BYD have fully dominated the electric vehicle market segment. In this context, many of Mercedes-Benz’s electric models are sold cold in China, including the electric version of the EQS model of its flagship S-Class sedan.
In terms of market segments, in the second quarter, Mercedes-Benz sold 64,800 high-end models, down 8% year-on-year and accounting for 14.3% of the brand’s total sales. Among them, Mercedes-AMG models (sales increased by 19% year-on-year) and G-Class (sales increased by 56% year-on-year) continued to be strong. Especially in the U.S. market, consumer demand for high-end models remains strong, driving retail deliveries to surge by 15%. In its second largest market, the United States, Mercedes-Benz has strengthened its market position by increasing investment; In the Chinese market in the first half of this year, Mercedes-Benz said that the company is in the high-endLuxury carsThe segment still maintains the first position in sales.
Global sales of Mercedes-Benz’s core model range decreased 6% year-on-year to 273,800 units in the second quarter. In the entry-level market, the company’s global vehicle sales fell 16% year-on-year to 115,100 units in the second quarter.