German Automakers Report Global Sales Slump Driven by China

Major German automakers face significant delivery declines in 2026, primarily due to deteriorating performance in China. Mercedes-Benz Group reported an 8% decrease in global car deliveries for the second quarter, totaling 417,800 vehicles. This downturn followed a 6% global decline in the first quarter and was driven by a 30% drop in Chinese sales, which the company attributed to product ramp-up timing and intensifying competition.

Volkswagen Group saw a similar trend, reporting an 8.6% decrease in global vehicle deliveries for the second quarter, falling to 2.08 million vehicles. The company experienced a sharp 36.6% drop in deliveries within China, contributing to a 6.3% overall decrease in global deliveries for the first half of 2026. Following the report, Volkswagen shares fell 1.03% to €70.78 on Xetra.

Both companies found partial offsets in other regions. Mercedes-Benz saw sales rise 13% in North America and 4% in Europe, with battery-electric vehicle deliveries jumping 50% to approximately 63,000 units. Volkswagen reported growth in South America, North America, and Europe. To recover Chinese losses, Mercedes-Benz plans to launch China-specific models, such as the long-wheelbase electric GLC L SUV, in the latter half of 2026. Additionally, Mercedes-Benz faces potential U.S. regulatory challenges due to a 9.98% stake held by the Chinese government-owned BAIC Group.