Key Facts
• Mercedes-Benz reported a 9% drop in Q2 2025 sales to 453,700 units.
• US sales fell 12%, while China sales declined 19% due to tariff impacts.
• Trade tensions, initiated by US tariffs under President Trump, reduced demand.
• SUVs like GLS and GLE, produced in Alabama for China, faced 10% retaliatory tariffs.
• Mercedes’ EV sales dropped 24% year-over-year in Q2 2025.
• Despite sales decline, Mercedes’ stock rose slightly on July 7 in Germany.
• Analyst Mark-René Tong noted slight improvement from Q1 and exceeded expectations.
Summary
Mercedes-Benz experienced a 9% year-over-year decline in Q2 2025 vehicle sales, totaling 453,700 units. The drop was driven by US-China trade tensions, with US sales down 12% and China sales falling 19%. Retaliatory tariffs, including a 10% levy on US-made SUVs like the GLS and GLE, significantly impacted demand. Additionally, Mercedes struggled in the Chinese EV market, with a 24% drop in EV sales, as local manufacturers like BYD dominated. Despite these challenges, Mercedes’ stock saw a slight increase, attributed to better-than-expected performance compared to Q1. Analysts highlighted the ongoing structural challenges for Western automakers in China, exacerbated by tariffs.
