Mercedes-Benz vehicle sales fall 6% in 1st quarter, led by China

German carmaker Mercedes-Benz Group said on Thursday its vehicle sales fell 6% year-on-year in the first quarter, weighed down by weaker demand in China and a model transition cycle.

Mercedes-Benz Group reported total deliveries of 499,700 vehicles for the January-March period, down from the same period last year.

Sales at its core Mercedes-Benz Cars division also fell 6% to 419,400 units.

China, the world’s largest auto market, remained the toughest region for Mercedes-Benz. Sales in the country dropped 27% to 111,600 units amid soft demand and intense competition.

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 the US, sales increased 20% to 81,100 units despite higher import tariffs, supported by strong demand for top-end models.

In Europe, sales rose 7% to more than 158,000 units, while electric vehicle sales jumped 34%, driven by the launch of new models.

Meanwhile, light commercial vehicle (van) sales fell 3% to 80,300 units in the January-March period.

- Middle East tensions weigh on sales

The company said ongoing conflict in the Middle East negatively affected first-quarter performance, particularly in Gulf countries, which remain an important market.

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.