TLDR
- MBG stock fell over 2.7%, trading around €53.1 following the Q1 sales report
- Total Q1 deliveries dropped 6% to 419,400 vehicles year-over-year
- China sales plunged 27%, the lowest level in nearly 10 years
- Europe sales rose 7% and US sales jumped 20%, but not enough to offset China losses
- Mercedes has labelled 2026 a “transition year” for China, with new models planned
Mercedes-Benz posted a rough start to 2026, with first-quarter deliveries falling 6% to 419,400 vehicles compared to the same period last year. The headline number tells only part of the story — the real pain is coming from China.
Mercedes-Benz’s car sales fell in the first quarter due to an accelerating decline in China https://t.co/tln5C0hR9o
— Bloomberg (@business) April 9, 2026
China sales dropped 27% in Q1, marking the lowest level for the brand in nearly a decade. Local Chinese automakers have been aggressively cutting prices, making it harder for premium foreign brands to hold their ground in the world’s largest car market.
Mercedes-Benz Group AG, MBG.DE
Mercedes has openly called 2026 a “transition year” for the brand in China. Part of the decline is tied to the phase-out of models in its entry segment, ahead of new model launches later in the year.
The stock reacted accordingly. MBG fell more than 2.7% on Thursday, trading around €53.1 after the sales figures were published.
Other Regions Pick Up Some Slack
It wasn’t all bad news. Europe delivered a 7% volume increase, helped by strong demand for newer electric models. The US market was the standout, posting a 20% gain in deliveries.
Those numbers gave Mercedes something to point to, but they weren’t enough to cancel out the China drag. The gap is simply too wide.
BMW, facing the same price war with Chinese domestic brands, is in a similar position. Both German automakers are navigating a market where local competition has fundamentally changed the economics of selling premium cars in China.
What Analysts Think
Wall Street analysts currently rate MBG as a “Moderate Buy” according to TipRanks consensus data. The average price target sits at around €61.6, implying upside potential of roughly 15.7% from current levels.
The company has not changed its full-year outlook at this stage. Management is banking on new model launches to stabilise performance in China through the rest of the year.
Mercedes delivered 419,400 vehicles in Q1 2026, down from the prior year, with China accounting for the steepest regional drop at 27%.
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