Mercedes-Benz released its global sales figures for the first quarter of 2025, revealing a 7% decline in total sales compared to last year. The automaker reported sales of 529,200 units, including passenger cars and vans. Analysts point to weakening demand in key markets such as China and Europe as the primary cause of the overall performance drop.
The battery electric vehicle (BEV) segment, a cornerstone of the company’s electrification strategy, struggled with a 10% decrease, falling from 50,500 units in the previous year to 45,500 units. This downturn is attributed to the gradual phase-out of the European Smart EV line and the German market’s transition to entry-level models.
Regional performance varied. The U.S. market showed a modest 1% growth, but sales in China and Europe declined by 10% and 7%, respectively. Mercedes-Benz cites a combination of economic slowdown and policy shifts as factors contributing to market stagnation.
Despite overall challenges, the luxury car segment, which Mercedes-Benz has prioritized as part of its premium strategy, showed resilience. Luxury car sales reached 65,100 units in Q1 2025, accounting for 14.6% of total sales, a slight increase from 14.4% in the same period last year. This uptick suggests some success in the brand’s upmarket positioning.
The high-performance Mercedes-AMG lineup bucked the trend with a 17% sales increase year-over-year, buoyed by new model launches, including the GLC, CLE, E-Class, and GT. The iconic G-Class saw an impressive 18% surge, reaffirming its status as a perennial favorite among luxury SUV enthusiasts.
Mercedes-Benz reported total passenger car sales of 446,300 units for the quarter. By focusing its sales strategy on luxury and high-performance vehicles, Mercedes-Benz plans to bolster profitability and brand equity.
As the automotive landscape continues to evolve, Mercedes-Benz aims to maintain its competitive edge as a premium brand by nimbly adapting to fluctuations. The company is committed to refining its product portfolio and tailoring strategies to specific market needs.
