Mercedes-Benz has said it plans to review "every aspect" of its business in China as its chief executive vowed to keep fighting in the world's largest car market despite collapsing sales. Underlying operating profit cratered in the three months to September, as the weakness in China resulted in it selling 21 per cent fewer of its most profitable top-end models compared with the same period in 2025. "More than 100 players are competing fiercely [in China], and that is driving down prices and profitability across the market," chief executive Ola Källenius said on Wednesday, adding that this was spreading internationally. Källenius said the carmaker would source everything locally for its products to be sold in China to reduce costs and would also compete with rivals in the country by strengthening its semi-autonomous technologies.
While Mercedes-Benz will focus on higher-end models rather than chasing higher sales volumes, Källenius stressed he was not considering a withdrawal from the market: "If you're global car company like Mercedes, there is not a play where you put China aside.".
Source: Financial Times Companies · Summarized by HeadlinesBriefing