Mercedes-Benz reported a 6% year-on-year fall in global car and van sales for the third quarter of 2026, with a sharp decline in China outweighing stronger performance in Europe and North America. The German manufacturer also recorded its highest-ever quarterly sales of battery-electric vehicles, highlighting the uneven transition facing Europe’s car industry.
The company sold 491,700 cars and vans worldwide between July and September, compared with the same period a year earlier. Mercedes-Benz shares fell by around 4% during trading before recovering some of the decline.
China weighs on Mercedes-Benz global sales
The main pressure came from Asia, where Mercedes-Benz sold 132,300 cars, 25% fewer than in the third quarter of 2025. Sales in China fell by 31%, reflecting strong competition, challenging market conditions, subdued demand and changes to the company’s model range.
China remains a crucial market for the manufacturer. It represented almost a quarter of Mercedes-Benz’s global car sales in the second quarter, making the latest decline particularly significant for the group’s financial outlook.
The company’s strongest-selling models in China included the GLC and E-Class. Together, the two models accounted for almost two-thirds of Mercedes-Benz Cars sales in the country during the quarter.
The latest figures follow a 30% year-on-year fall in Chinese car sales during the second quarter. In July, Mercedes-Benz lowered its full-year forecasts for car sales and group revenue, citing continued weakness in China.
Europe and North America provide support
Mercedes-Benz’s results were stronger outside China. Group sales excluding China rose by 2%, while car sales increased by 1%. The company said car sales outside China had grown for the third consecutive quarter of 2026.
European car sales increased by 5% to 168,700 vehicles. Germany and the United Kingdom were among the strongest markets, with sales rising by 13% and 7% respectively.
Sales of Mercedes-Benz Cars in North America grew by 4% to 83,200 vehicles. US sales increased by 6% during the quarter.
The regional breakdown shows why the company’s overall performance was mixed. Growth in two important markets helped cushion the impact of China, but not enough to prevent a global decline.
Electric vehicle sales reach a record
Battery-electric vehicle sales were the brightest part of the update. Mercedes-Benz sold 68,400 fully electric cars globally in the third quarter, an increase of 61% from a year earlier and 29% compared with the second quarter.
Fully electric vehicles represented 16.8% of global Mercedes-Benz car sales during the period. That was 7.2 percentage points higher than in the same quarter of 2025.
Europe delivered particularly strong growth. Quarterly battery-electric vehicle sales in the region rose by 78% year on year and reached a record for Mercedes-Benz Cars.
The company said demand for its newer electric models was strong, with the electric GLC, CLA, GLB and GLA sold out in Europe for the remainder of 2026. Order books for those models reportedly extend into 2027.
Production facilities in Bremen and Rastatt in Germany, as well as Kecskemét in Hungary, were operating on three-shift schedules to meet demand for the electric range.
Why the figures matter for Europe’s car industry
The results offer a snapshot of the competing forces affecting European vehicle manufacturers. Demand for electric cars is expanding, but manufacturers remain exposed to regional competition, changing consumer preferences and uneven economic conditions.
- China: Sales declined sharply amid intense competition and weaker market conditions.
- Europe: Overall car sales and electric vehicle demand both increased.
- North America: Sales growth provided additional support outside China.
- Production: Several European plants increased working patterns to meet demand for electric models.
The figures also underline the importance of new model launches. Mercedes-Benz’s electric GLC, CLA, GLB and GLA are central to its effort to expand battery-electric sales in Europe.
Sales remain lower for the first nine months
Despite the quarterly improvement in electric vehicle demand, Mercedes-Benz’s overall sales remained below the previous year for the first nine months of 2026.
The company sold 1,244,400 cars during that period, a 7% decline year on year. Fully electric car sales, however, rose by 40% to 165,500 vehicles.
This divergence is significant: total volumes are under pressure, while the share of fully electric vehicles is rising. For Mercedes-Benz and other European manufacturers, the challenge is to convert electric vehicle demand into sufficient overall growth and profitability.
What happens next?
Mercedes-Benz will need to manage two contrasting priorities in the remainder of the year: responding to difficult conditions in China while expanding production and deliveries of electric vehicles in Europe and North America.
The company’s revised full-year forecasts, announced in July, will remain an important reference point for investors. Future results will show whether stronger electric model demand can offset weaker sales in China and broader pressure on global vehicle markets.
For Ireland and other European markets, the update points to continued availability and investment in new electric models, although local deliveries and pricing may vary by market. The wider European car industry is also adapting to tighter emissions requirements, changing consumer demand and increasing competition in electric vehicles.
Mercedes-Benz’s latest update therefore presents a divided picture: global sales are falling, but the company’s electric transition is gaining momentum, particularly in Europe.
