Mercedes-Benz has achieved its highest-ever quarterly sales of battery-electric vehicles, but falling demand in China has weighed on its overall performance.
The German luxury carmaker delivered 491,700 cars and vans worldwide in the third quarter of 2026, a 6% decline compared with the same period last year. Its latest results highlight a growing challenge for established automakers: expanding electric vehicle sales while competing in China’s increasingly difficult automotive market.
Despite the overall decline, Mercedes-Benz sold 68,400 battery-electric vehicles (BEVs) during the quarter. That represented a 61% increase year-on-year and a 29% rise compared with the second quarter.
The figures underline the growing importance of electric vehicles to Mercedes-Benz, even as pressure in one of its biggest markets continues to affect the business.
China downturn hits Mercedes-Benz sales
China remains the biggest challenge for Mercedes-Benz as competition intensifies and customer demand weakens.
The company sold 86,800 cars in China during the third quarter, down 31% from a year earlier. Across Asia, passenger-car sales fell 25% to 132,300 vehicles, reflecting the difficult conditions in the region.
The decline in China has put pressure on Mercedes-Benz’s wider business. The company’s passenger-car division delivered 407,200 vehicles globally, down 8% year-on-year.
The results also reveal a widening contrast between markets. Outside China, Mercedes-Benz passenger-car sales increased by 1%, marking the third consecutive quarter of growth in those markets.
Mathias Geisen, Mercedes-Benz board member responsible for sales and customer experience, said the company had continued to grow outside China. He pointed to stronger demand for its newer models as a source of momentum.
Europe and North America provide support
Europe and North America helped offset some of the weakness in China, with growth in both regions during the quarter.
Mercedes-Benz passenger-car sales in Europe rose 5% to 168,700 vehicles. Germany recorded a 13% increase, while sales in the United Kingdom grew by 7%.
In North America, passenger-car sales increased 4% to 83,200 vehicles. Sales in the United States rose 6%, providing further support for the company’s performance outside China.
The results suggest that Mercedes-Benz’s fortunes vary significantly across markets. Stronger demand in Europe and North America is helping the company navigate weaker conditions in Asia.
New electric models drive record sales
Electric vehicles delivered the clearest positive news in Mercedes-Benz’s latest results. The passenger-car division sold 68,400 battery-electric vehicles during the third quarter. That was its highest quarterly total on record, up 61% from a year earlier and 29% from the previous quarter.
The electric GLC was a major contributor. Mercedes-Benz said sales of the model more than tripled compared with the second quarter, reflecting growing demand for its latest electric offering.
The electric CLA family, GLC, GLB and GLA have also attracted strong interest in Europe. The company said these models were sold out for the remainder of 2026, with orders extending well into 2027.
To meet demand, Mercedes-Benz said plants in Bremen and Rastatt in Germany, as well as Kecskemét in Hungary, were operating on three shifts. The wider group recorded an even larger electric-vehicle total because its figures include vans. Mercedes-Benz sold 78,100 battery-electric cars and vans globally during the quarter, a 52% annual increase.
Competition remains a major concern
Despite the electric-car sales record, Mercedes-Benz faces a difficult balancing act. It must expand its electric range while protecting sales in China, where local manufacturers are competing aggressively across price and technology.
The company has already reduced its full-year outlook for car sales and group revenue in response to difficult market conditions, softer demand and changes to its model range in China.
Its latest results show why a strong electric-vehicle performance does not automatically translate into overall sales growth. Demand for newer electric models is increasing, but the decline in conventional and premium vehicle sales across a major market continues to weigh on the business.
For Mercedes-Benz, the challenge now is to turn its electric-vehicle momentum into sustained growth while regaining ground in China.
The company’s next test will be whether its new models can maintain their appeal as competition intensifies and customer expectations evolve.
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