Mercedes-Benz ended 2025 facing a clear reality check. The German automaker saw its global sales fall noticeably over the year, largely due to a sharp slowdown in China — a market that has long been central to its global success.
Over the course of the year, Mercedes-Benz sold 2.16 million passenger cars and vans, a 10% decline compared to 2024. Passenger car deliveries slipped by 9% to just over 1.8 million units, while van sales dropped 11% to 359,000 vehicles. Fully electric models accounted for around 10% of passenger car sales, reflecting steady but cautious progress in the company’s electrification journey.
China’s Market Shift Hits Hard
China, which still represents roughly one-third of Mercedes-Benz’s global sales, proved to be the biggest drag on performance. Sales in the country fell by 19% to 551,900 vehicles, as consumer confidence weakened and competition from fast-moving local brands intensified.
The figures highlight how dramatically the Chinese market has changed. Domestic manufacturers are no longer simply competing on price — they are moving faster, expanding their electric lineups, and increasingly setting the pace in segments once dominated by foreign premium brands.
A Mixed Picture Elsewhere
In its home market of Germany, Mercedes-Benz managed to hold its ground, selling 213,200 vehicles, broadly in line with the previous year.
The picture was less encouraging in the United States. Sales there declined by 12% to around 285,000 vehicles, with the company pointing to tariffs among the factors weighing on demand. At the same time, Mercedes-Benz noted an interesting contrast: while shipments to dealers fell, actual deliveries to U.S. customers rose by 1%, suggesting that retail demand held up better than wholesale figures might imply.
Like many automakers, Mercedes-Benz reports sales based on vehicles delivered to dealerships rather than final customer registrations.
Pressure Across the Lineup
The slowdown was felt across most of the brand’s portfolio. Sales of entry-level and core models both declined by 10%, underlining how competitive pressure has spread well beyond niche segments.
Even the luxury range — including the S-Class, G-Class, Mercedes-AMG models, and Mercedes-Maybach — was not immune, recording a 5% drop. Still, the core segment, led by models such as the C-Class and E-Class, remained the backbone of the business, accounting for more than half of total sales.
A Changing Market Backdrop
Mercedes-Benz’s sales decline in 2025 highlights how shifting market dynamics — particularly in China and the United States — now play a larger role in shaping results for even well-established premium brands. The company itself pointed to softer demand in key regions, heightened competition from local players, and external factors such as tariffs as contributors to the year’s downturn, underscoring that even the industry’s veterans must navigate a more competitive global landscape.
