Key Highlights
- Shares of MBG dropped more than 2.7%, settling near €53.1 after quarterly sales figures were released
- First-quarter vehicle deliveries declined 6% year-over-year, totaling 419,400 units
- Chinese market sales collapsed by 27%, reaching their weakest point in approximately a decade
- European deliveries increased 7% while American sales surged 20%, though insufficient to balance Chinese losses
- The automaker has designated 2026 as a “transition year” for its Chinese operations, with upcoming model introductions
Mercedes-Benz kicked off 2026 on a challenging note, recording a 6% decline in first-quarter vehicle deliveries to 419,400 units versus the comparable period in 2025. However, the aggregate figure masks a deeper concern — the severe deterioration in Chinese market performance.
Mercedes-Benz’s car sales fell in the first quarter due to an accelerating decline in China https://t.co/tln5C0hR9o
— Bloomberg (@business) April 9, 2026
The Chinese market experienced a dramatic 27% contraction during the first quarter, representing the brand’s weakest performance in the region in close to ten years. Domestic Chinese manufacturers have launched aggressive pricing strategies, creating significant headwinds for premium international brands competing in the globe’s most substantial automotive market.
Mercedes-Benz Group AG, MBG.DE
Mercedes-Benz has publicly characterized 2026 as a “transition year” for its Chinese market strategy. A portion of the sales decline stems from the discontinuation of entry-level models in preparation for new product launches scheduled for later this year.
Investors responded negatively to the news. MBG shares declined over 2.7% during Thursday trading, hovering around €53.1 following the publication of quarterly delivery data.
Gains in Other Markets Provide Partial Offset
The results weren’t entirely negative. European markets registered a 7% volume improvement, supported by robust consumer interest in recently introduced electric vehicle models. The American market emerged as the strongest performer, recording a substantial 20% increase in deliveries.
While these regional performances provided some positive momentum for Mercedes, they proved insufficient to compensate for the Chinese market weakness. The magnitude of the China shortfall is simply too significant.
BMW confronts similar challenges as it battles the same competitive pricing dynamics from Chinese domestic manufacturers. Both German luxury marques are grappling with a market landscape where local competitors have fundamentally altered the profitability equation for premium vehicle sales in China.
Analyst Perspectives
According to TipRanks consensus research, Wall Street analysts maintain a “Moderate Buy” rating on MBG shares. The consensus price target stands at approximately €61.6, suggesting potential upside of around 15.7% from present trading levels.
The company has maintained its full-year guidance unchanged at this juncture. Executive leadership is relying on forthcoming model introductions to restore stability to Chinese market performance throughout the remainder of the fiscal year.
Mercedes-Benz distributed 419,400 vehicles during the first quarter of 2026, representing a decline from the previous year, with the Chinese market responsible for the most pronounced regional contraction at 27%.
