Mercedes posts record EV sales, but China slump drags quarterly sales down 6%

Mercedes-Benz posted its strongest quarter ever for battery-electric vehicle sales, but a sharp downturn in China overshadowed that bright spot.

Here's what to know

After the company reported third-quarter sales of 491,700 cars and vans, down 6% from the same period last year, its shares fell about 4% near 1 p.m. CEST on October 7, then recovered some of the loss, according to Euronews.

Mercedes-Benz's core car division delivered 407,200 vehicles worldwide in the quarter, down 8% from a year earlier.

Much of the pressure came from China, where sales dropped 31% amid "intense competition and challenging market conditions." Across Asia, Mercedes sold 132,300 cars, down 25% year over year, and Euronews noted that China accounted for nearly one-quarter of Mercedes-Benz's global car sales in the second quarter.

That weakness had already led Mercedes to cut its full-year outlook for car sales and group revenue in July. The automaker said tougher competition, softer demand, and changes to its model range in China had all hurt performance there.

More background

Results were firmer without China in the mix. Euronews reported that group deliveries rose 2% and car sales increased 1%. Mathias Geisen, the Mercedes-Benz board member responsible for sales and customer experience, said, "Outside China, car sales increased for the third consecutive quarter in 2026."

Electric vehicles were a major source of momentum. Worldwide electric-car sales climbed to 68,400 in the quarter, up 61% from a year earlier and 29% from the second quarter. Geisen said, "Mercedes-Benz Cars achieved the highest quarterly BEV sales in the company's history, led by the electric GLC, whose sales more than tripled compared with Q2."

Europe also marked a record quarter for Mercedes-Benz Cars BEV sales, up 78% year-on-year and 24% from the second quarter. Mercedes also said several new electric models in Europe are already committed, with orders extending into 2027.

What's being done?

Strong demand for the new electric GLC, CLA, GLB, and GLA has been helping in Europe, while North American growth provided additional support for the quarter.

To meet BEV demand, Mercedes said its plants in Bremen and Rastatt, Germany, as well as Kecskemét, Hungary, are operating on three shifts.

At the same time, the company remains heavily dependent on a small group of standout models in China. The GLC and E-Class together accounted for nearly two-thirds of Mercedes-Benz Cars sales there, Euronews reported, as the automaker tries to meet fast-growing EV demand in some markets while shoring up a critical region that has recorded two straight steep quarterly declines.

Geisen said, "Our new electric models GLC, CLA, GLB and GLA are sold out in Europe for the rest of the year, with order books extending into 2027."

Where can I learn more?

These articles provide context for how Mercedes-Benz's mixed quarter reflects an EV market shaped by battery breakthroughs, fierce competition in China, and heavy reliance on Chinese supply chains. 

• Mercedes-Benz and Factorial took a major leap toward solid-state EV batteries with far longer range.

• In China, EV price war pressures left about 70% of car sales unprofitable.

• Globally, just five EVs captured 20% of sales as Tesla and Chinese brands surged.

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