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Mercedes-Benz Q1 Deliveries Drop 6% as China Sales Hit Near-Decade Low

The setback underscores how price cuts by Chinese brands are squeezing foreign luxury makers.

The logo of Mercedes-Benz on the new Mercedes GLB model during its launch at the Mercedes factory in Kecskemet, Hungary, January 19, 2026. REUTERS/Bernadett Szabo

Overview

  • Mercedes-Benz reported 419,400 vehicles delivered in the first quarter, a 6% decline that pushed the stock down about 2.7% to roughly €53.
  • China deliveries fell 27%, the weakest level in almost ten years, reflecting heavy discounting by domestic rivals.
  • Europe posted a 7% gain and the United States jumped 20%, yet those increases did not make up for the shortfall in China.
  • Management labeled 2026 a transition year in China, with entry models being phased out before new launches later in 2026.
  • Analysts tracked by TipRanks keep a Moderate Buy rating with an average price target near €61.6, and the company has not changed its full-year guidance.