On February 3rd, Hongxing Capital Bureau reported that on February 1st, Mercedes-Benz lowered the manufacturer's suggested retail prices for some models by about 10%, mainly affecting the Mercedes-Benz C-Class, GLC, GLB, and other models.
On February 3rd, a Mercedes-Benz salesperson told Hongxing Capital Bureau: &#34;There have always been discounts at the terminal, and the actual sales prices have not changed much.&#34;
Prior to this, the All-China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce reported that authorized dealers are generally facing issues such as excessive inventory, serious price inversion, and long rebate redemption cycles, and had communicated with the Mercedes-Benz brand side.
Hongxing Capital Bureau noted that in 2025, Mercedes-Benz's sales in China fell by 19% year-on-year, making it the brand with the largest decline among the BBA.
<h2>Last Year, BBA Sales in China Declined, with Mercedes-Benz Seeing the Largest Drop</h2>
On February 2, 2026, the All-China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce (hereinafter referred to as &#34;All-China Car Dealers&#34;) issued a statement indicating that on February 1st, Mercedes-Benz adjusted the manufacturer's suggested retail prices for some models by about 10%.
All-China Car Dealers stated: &#34;Although this business policy adjustment still has a significant gap from the overall demands of dealers, it can, to some extent, release some liquidity for Mercedes-Benz dealers, marking a pragmatic step towards a comprehensive optimization of the brand's dealer business policies.&#34;
According to public information, this price adjustment mainly involves the Mercedes-Benz C-Class, GLC, GLB, and other models, with the Mercedes-Benz C 200L seeing a price reduction of about 33,000 yuan, some models of the Mercedes-Benz GLB 200 seeing a reduction of about 38,000 yuan, and the Mercedes-Benz GLC 300 coupe model seeing a reduction of about 68,000 yuan.
On February 3rd, a Mercedes-Benz salesperson told Hongxing Capital Bureau: &#34;This adjustment is for the manufacturer's suggested retail price, but there have always been discounts at the terminal, and the actual sales prices have not changed much.&#34;
Data shows that in 2025, retail sales of luxury cars in China fell by 9.6% year-on-year, while Mercedes-Benz's sales in China significantly declined, far exceeding the overall decline, making it the brand with the largest drop among the BBA.
Mercedes-Benz delivered a total of 575,000 new cars in China, a year-on-year decline of 19%, returning to levels seen nearly a decade ago. BMW's cumulative sales in China reached 626,000 units, a year-on-year decline of 12.5%; Audi sold over 617,000 units in 2025, a year-on-year decline of about 5%.
The landscape of the luxury car market in China is being reshaped, with traditional luxury brands facing challenges in the Chinese market.
On January 13th, Duan Jianjun, President and CEO of Beijing Mercedes-Benz Sales Service Co., Ltd., stated that 2025 presents many challenges for the automotive market, and the Mercedes-Benz sales company has adjusted its sales targets in collaboration with dealer partners eight times. New car sales need to balance market challenges with market share acquisition; sales volume is not the only work goal, and one must have determination and courage in making trade-offs; at the same time, it is necessary to objectively and calmly view market changes, restrain and pragmatically expect market share, and agilely adjust business structures while seizing market opportunities from favorable policies.
Duan Jianjun stated: &#34;For Mercedes-Benz, 2025 is a year full of obstacles and difficulties; the market has never been as challenging as it is today. This year, we will celebrate our 140th anniversary, and at this special moment, we need to focus more and do three things well: solidly improve our products, earnestly enhance luxury services and experiences,
&#34;Unwaveringly continue to invest in China.&#34;
In 2026, Mercedes-Benz will welcome its largest product update in recent years, introducing over 15 new and updated products to the Chinese market, covering the new generation luxury, core luxury, and high-end luxury segments, encompassing all forms of drive.
<h2>High dealer inventory and price inversion, two industry organizations have previously sent letters to the Mercedes-Benz brand</h2>
At the beginning of 2025, Mercedes-Benz stated, &#34;Based on the business consensus of 'enhancing operational efficiency,' we, together with dealer investors, have decided to strategically and proactively implement network optimization starting in 2025.&#34; A plan was formulated to reduce over a hundred domestic dealers.
However, after that, the National Automobile Dealers Association repeatedly sent letters to the Mercedes-Benz brand regarding the dealer predicament.
On January 29, the Mercedes-Benz brand celebrated its 140th birthday. Just the day before, the National Automobile Dealers Association released a notice regarding the communication and coordination with the brand concerning the demands of Mercedes-Benz dealers.
The notice mentioned that by the end of 2025, some authorized dealers of the Mercedes-Benz brand reported that they were generally facing issues such as excessively high inventory, severe price inversion, long rebate redemption cycles, excessive pressure from business assessments, and the absence of a network exit compensation mechanism, leading to continued operational pressure on the enterprises.
In December 2025, the National Automobile Dealers Association communicated with the Mercedes-Benz China team regarding the above issues without success. In January of this year, they sent two letters to the global management team of Mercedes-Benz, calling for attention to the demands of dealers in the Chinese market and urgent action.
On January 23, both the global management team and the China management team of Mercedes-Benz responded, expressing high importance to the relevant situation and promising to systematically sort out the core issues and quickly introduce corresponding measures for specific problems.
It is worth noting that the China Automobile Dealers Association also communicated with Beijing Mercedes-Benz Sales Service Co., Ltd. regarding similar issues. The association sent a letter on December 18, 2025, and Mercedes-Benz replied on the 26th of the same month. Subsequently, a senior executive vice president led a visit to the association, where Mercedes-Benz also presented a series of adjustment plans during the talks.
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On February 1st, Mercedes-Benz lowered the suggested retail prices of some models by approximately 10%, mainly affecting the C-Class, GLC, and GLB models. Despite the price reduction, sales personnel indicated that the actual selling prices remained unchanged. In 2025, Mercedes-Benz's sales in China fell by 19% year-on-year, the largest decline among the BBA, reflecting intensified competition in the Chinese luxury car market

- On February 1, Mercedes-Benz reduced the suggested retail prices of several models by approximately 10%, including the C-Class, GLC, and GLB.  
- Despite this adjustment, sales personnel indicated that actual selling prices remained largely unchanged due to ongoing discounts.  
- In 2025, Mercedes-Benz experienced a 19% drop in sales in China, the largest decline among luxury brands, prompting industry organizations to communicate concerns regarding high inventory and pricing issues to the company.

The guide prices for some Mercedes-Benz models have been reduced by 10%, and the sales of BBA in China are expected to decline in 2025