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FinanceMercedes-Benz cuts revenue outlook as China luxury slump deepens
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Mercedes-Benz Group has cut its revenue outlook as the luxury car market in China continues to slump. The average selling price of Mercedes vehicles fell to 64,700 euros from 67,700 euros a year earlier. Sales in China, the world's largest car market, plunged 30% during the second quarter, significantly outpacing the overall market decline. The announcement was made on July 28, 2026, and reported by The Business Times Singapore. The company is based in Stuttgart, Germany, and is facing headwinds from weakening demand in the Chinese luxury segment.
Source report
STUTTGART — Mercedes-Benz Group has lowered its revenue outlook as the luxury car market in China continues to deteriorate, with the company's sales in the world's largest car market falling sharply.
Key Highlights
- Average selling price dropped to €64,700, down from €67,700 a year earlier
- Sales in China plunged 30% during the second quarter, significantly outpacing the overall market decline
Market Context
The German automaker's revised forecast reflects deepening challenges in China's luxury vehicle segment, where demand has weakened considerably. The 30% drop in Mercedes' China sales during Q2 2026 far exceeded the broader market contraction, underscoring the severity of the downturn for premium automakers.
Photo: Reuters — Mercedes' sales in the world's biggest car market plunged 30% during the second quarter, outpacing an overall market drop.
Source
The Business TimesWestern
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Mercedes cuts revenue outlook as China luxury slump deepens