Mercedes-Benz some models' guide prices reduced by 10%, and BBA's sales in China will decline in 2025

Red Star Capital Bureau, February 3rd: On February 1st, Mercedes-Benz reduced the manufacturer’s suggested retail prices for some models by approximately 10%, mainly involving models such as the C-Class, GLC, and GLB.

On February 3rd, a Mercedes-Benz salesperson told Red Star Capital Bureau: “There have always been discounts at the terminal, and the actual sales prices haven’t changed much.”

Prior to this, the All-China Federation of Industry and Commerce Automotive Dealers Chamber of Commerce reported that, regarding issues faced by authorized dealerships such as excessive inventory, severe price inversion, and long rebate settlement cycles, they had communicated with the Mercedes brand representatives.

Red Star Capital Bureau noted that in 2025, Mercedes-Benz’s sales in China declined by 19% year-over-year, the largest decrease among the BBA brands.

Last year, BBA brands all saw declines in China, with Mercedes experiencing the largest drop

On February 2, 2026, the All-China Federation of Industry and Commerce Automotive Dealers Chamber of Commerce (hereinafter referred to as “All-China Dealers”) issued a statement that on February 1st, Mercedes-Benz announced a reduction of about 10% in the manufacturer’s suggested retail prices for some models.

All-China Dealers stated: “Although this business policy adjustment still falls far short of the overall demands of dealers, it can to some extent help Mercedes-Benz dealers release some liquidity, marking a pragmatic step toward comprehensive optimization and adjustment of the dealer business policies by the Mercedes brand.”

According to publicly available information, this price adjustment mainly involves models such as the C-Class, GLC, and GLB. The Mercedes-Benz C 200L price was reduced by about 33,000 yuan, the GLA 200 models by about 38,000 yuan, and the GLC 300 coupe models by about 68,000 yuan.

On February 3rd, a Mercedes-Benz salesperson told Red Star Capital Bureau: “This adjustment is to the manufacturer’s suggested retail price, but there have always been discounts at the terminal, so the actual sales prices haven’t changed much.”

Data shows that in 2025, retail sales of luxury cars in China declined by 9.6% year-over-year. Meanwhile, Mercedes-Benz’s sales in China significantly declined, far exceeding the overall decrease, making it the brand with the largest drop among the BBA brands.

Mercedes-Benz delivered a total of 575,000 new vehicles in China, down 19% year-over-year, returning to levels seen nearly a decade ago. BMW’s cumulative sales in China reached 626,000 units, down 12.5%, and Audi’s sales exceeded 617,000 units, down about 5% in 2025.

The landscape of China’s luxury car market 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 would be a challenging year for the automotive market. Mercedes-Benz’s sales company and dealer partners had jointly adjusted their sales targets eight times. New car sales need to balance market challenges with market share acquisition; sales volume is not the only goal. It requires resolve and courage in making trade-offs; at the same time, market changes should be viewed objectively and calmly, with restrained and pragmatic expectations for market share, agile and flexible business adjustments, and seizing policy-driven market opportunities.

Duan Jianjun said: “2025 will be a difficult year for Mercedes-Benz, with unprecedented challenges in the market. This year, we will celebrate our 140th anniversary. At this special moment, we need to focus more and do three things well: earnestly improve our products, diligently enhance luxury services and experiences, and unwaveringly continue investing in China.”

In 2026, Mercedes-Benz will undergo its largest-scale product updates and iterations in recent years, introducing over 15 new and facelifted models to the Chinese market, covering emerging luxury, core luxury, and high-end luxury segments, across all drive types.

High inventory levels and price inversion issues have led two major industry organizations to send letters to the Mercedes brand

In early 2025, Mercedes-Benz stated, “Based on the business consensus of ‘improving operational efficiency,’ we, together with dealer investors, have decided to proactively implement network optimization strategically starting in 2025,” and planned to cut over 100 domestic dealerships.

However, afterward, the All-China Dealers Chamber of Commerce repeatedly wrote to Mercedes-Benz regarding dealer difficulties.

On January 29th, Mercedes-Benz celebrated its 140th anniversary. The day before, the All-China Dealers issued a report titled “Communication and Coordination on Dealer-Related Demands of Our Association with the Mercedes-Benz Brand.”

The report mentioned that by the end of 2025, some authorized Mercedes-Benz dealers reported that they faced issues such as excessive inventory, severe price inversion, long rebate settlement cycles, excessive business assessment pressures, and lack of a network exit compensation mechanism, leading to ongoing operational pressure.

In December 2025, the All-China Dealers attempted to communicate these issues with Mercedes-Benz China but failed. In January, they sent two letters to Mercedes-Benz’s global management team, urging attention to dealer demands in China and calling for urgent action.

On January 23rd, both Mercedes-Benz’s global management team and China management team responded, stating they highly valued the situation, would systematically analyze core issues, and would soon introduce measures to address specific problems.

It is noteworthy that the China Association of Automobile Circulation also communicated similar issues with Beijing Mercedes-Benz Sales Service Co., Ltd. The association sent a letter on December 18, 2025, and Mercedes-Benz replied on December 26. Subsequently, a senior executive vice president led a visit to the association, during which Mercedes-Benz proposed a series of adjustment plans.

This article is sourced from China Entrepreneur Magazine

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