Mercedes-Benz reported a 6% decline in car sales to 419,400 vehicles in the first quarter, with global car and van sales falling 6% to 499,700 vehicles. The German luxury automaker faced significant challenges in China, its largest market, where sales plummeted 27% as the company navigates a transition year with key model replacements.

While strong growth in the U.S. and Europe partially offset the Chinese downturn, macroeconomic uncertainties and challenging market conditions weighed on performance. The company noted that 2026 marks a transition year in China as it replaces several key models and expands its portfolio with different drivetrains and China-specific premium features.

The automaker remains cautiously optimistic about future prospects, citing recent model launches that are expected to support sales in coming quarters. However, Mercedes-Benz continues to closely monitor geopolitical tensions, particularly the conflict in the Middle East, and their potential impact on global consumer sentiment.