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Mercedes' car sales down 12% in Q4 due to tariffs, competition

Published by Global Banking & Finance Review

Posted on January 12, 2026

1 min read

· Last updated: January 20, 2026

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Mercedes' car sales down 12% in Q4 due to tariffs, competition
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Jan 12 (Reuters) - Sales in Mercedes-Benz's core car business slumped in the final quarter of 2025, impacted by tariffs and the competitive market environment, the German luxury carmaker said on

Mercedes' car sales down 12% in Q4 due to tariffs, competition

Mercedes-Benz Q4 Sales Overview

Jan 12 (Reuters) - Sales in Mercedes-Benz's core car business slumped in the final quarter of 2025, impacted by tariffs and the competitive market environment, the German luxury carmaker said on Monday.

Sales Performance by Region

The company achieved quarterly sales of 459,400 vehicles, down 12% compared with the same quarter a year ago.

Challenges Facing German Automakers

While sales growth in Europe remained stable, it dropped in the United States and China by 19% and 22%, respectively, said the carmaker.

Mercedes has become the latest among German automakers, alongside Volkswagen and BMW, to struggle with challenging market conditions in both the U.S. and China.

(Reporting by Amir Orusov and Ilona WissenbachEditing by Miranda Murray)

Key Takeaways

  • Mercedes-Benz car sales fell by 12% in Q4 2025.
  • Tariffs and competition affected sales performance.
  • Sales dropped significantly in the US and China.
  • German automakers face challenges in key markets.
  • Stable sales growth was maintained in Europe.

Frequently Asked Questions

What is a sales performance?
Sales performance refers to the measurement of a company's sales activities and results over a specific period, indicating how well it meets its sales targets.
What is market competition?
Market competition refers to the rivalry among businesses to attract customers, which can influence pricing, product offerings, and overall market dynamics.
What is a luxury carmaker?
A luxury carmaker is a manufacturer that produces high-end vehicles, often characterized by superior quality, performance, and advanced features.
What is a competitive market environment?
A competitive market environment is one where multiple businesses vie for the same customers, leading to price competition and innovation.

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