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German premium automaker Mercedes-Benz said Wednesday its first-quarter profit fell by almost a fifth as cutthroat competition in China shakes the world’s carmakers.<\/p>\n
Net profit for January to March came in at 1.43 billion euros ($1.67 billion), down more than 17 percent on the previous year, hit by difficulties in China.<\/p>\n
“In China, intense competition and subdued demand continued to weigh on the market,” Mercedes said.<\/p>\n
The world’s largest market, China has become a fierce battleground for carmakers amid a brutal price war and fierce competition from local players such as BYD and Geely.<\/p>\n
Mercedes said car sales by volume in China fell 27 percent in the first three months of 2026, even as they grew in Europe and North America.<\/p>\n
The firm’s China sales were last year already at their lowest level since 2016.<\/p>\n
Intense competition in the country, long a steady source of profits for German carmakers, has hurt Mercedes and its rivals.<\/p>\n
The 10-brand Volkswagen Group, which includes premium marques such as Audi and Porsche, is planning 50,000 job cuts by the end of the decade.<\/p>\n
China’s BYD, the world’s largest electric carmaker, meanwhile said Tuesday its first-quarter profit had more than halved amid slowing domestic sales.<\/p>\n
Restating its commitment to China, Mercedes said it was working with local firms to develop “a new generation of China-fit vehicles”, pointing to the China variant of the electric GLC compact SUV launched at the ongoing Auto China exhibition in Beijing.<\/p>\n
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