Shares of Mercedes-Benz Group (DE:MBG) fell as the company reported lower car sales in the first quarter of 2026. The decline was caused by a massive drop in its sales in China, marking the lowest level in almost ten years. Consequently, the car company is now raising concerns about its performance in the region due to this drastic sales decline.
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MBG Stock Falls as China Car Sales Dwindle
The price of MBG declined by over 2% today, now trading at around €53.1, following the company’s report of lower-than-expected car sales. Mercedes has sold fewer cars in the first three months of this year, recording a 6% drop in its total deliveries. This poor performance was driven by increased competition in China, resulting in a nearly 27% decline in sales.
Apparently, people are becoming less interested in buying expensive cars as local Chinese brands become more popular. Car companies in China are now competing with foreign brands by significantly lowering prices, making it difficult for firms like Mercedes to meet their sales targets in the region.
As a result, Mercedes has tagged 2026 as a “transition year” and plans to introduce new models to adjust its strategy in China. While Mercedes aims to fix the ongoing problem, the company still expects high competition in the region in the meantime.
Other Markets Show Growth Despite China Slump
While sales dropped in China, Mercedes saw an increase in other regions. The company experienced better results in Europe, recording roughly a 7% increase, and another 20% in the United States. This growth has helped the company balance some of its losses from the Chinese market.
In Europe, electric cars performed well, especially as newer models were introduced to the market, propelling the company’s sales in the region.
While these helped mitigate losses, profits could not offset the full decline in China. As a result, Mercedes is now trying to launch new vehicles to boost its market position. This could help it recover if demand improves in the coming months.
Is MBG a Good Buy Now?
TipRanks consensus data show that Mercedes-Benz Group (MBG) is ranked “Moderate Buy” by Wall Street analysts due to ongoing challenges in its China business and the global auto market. The stock is projected to reach an average price target of about €61.6, with upside potential of 15.7%. For more information on the stock’s performance, ratings, and price targets, visit TipRanks’ Stocks Comparison Center.
