Mercedes Loses Ground in China's Premium Auto Market

AI Summary

Mercedes-Benz Group AG's sales in China have sharply declined, selling only 1,153 units in the first half of 2026 compared to competitors like Xiaomi Corp, which sold over 80,000 units. This trend reflects the broader challenges faced by German automakers like BMW, Volkswagen, and Porsche in the Chinese premium auto market experiencing significant sales drops.

After decades of winning over Chinese buyers with its German engineering, Mercedes-Benz Group AG sold only 1,153 units in China in the first half of 2026, a fraction of the more than 80,000 similarly priced SU7 sedans Xiaomi Corp. delivered in the period. The performance echoes the challenges BMW AG, Volkswagen AG and Porsche AG face in China, where they all reported second-quarter sales declines of at least 30%, worse than the overall market’s drop. Bloomberg's William Wilkes reports. (Source: Bloomberg)