On the Dash:
- Mercedes EV sales fell 9% in 2025 to 168,800, widening the gap with BMW’s 442,072 EVs.
- The company faces stiff competition in China, U.S. tariffs, and a crowded global EV market.
- Upcoming EVs such as the CLA and GLC could drive growth and early momentum in Mercedes’ electric lineup.
On January 12, Mercedes-Benz reportedly sold 168,800 fully electric vehicles in 2025, marking a 9% decrease from 2024. Conversely, BMW’s EV sales rose 3.6% to 442,072, further widening the gap between the two German automakers and highlighting the pressure on Mercedes CEO Ola Källenius to maintain the company’s competitiveness among industry shifts.
While Mercedes delivered some bright spots last year, including a record sales performance for its iconic G-Class off-roader, the company’s overall global vehicle deliveries declined 9% to 1.8 million, marking one of its weakest annual performances in recent years. Medium-sized models, like the E-Class, saw a 10% drop in global sales, and the automaker’s deliveries in China, the world’s largest auto market, fell 19%, reflecting intensified competition from domestic EV manufacturers.
Chinese companies like BYD have been gaining ground by offering increasingly sophisticated plug-in vehicles at lower prices, placing additional pressure on established luxury brands. Even other German automakers, like Volkswagen, have felt the squeeze. For instance, Volkswagen’s EV deliveries in China fell 44% in 2025, even as the company grew global EV sales thanks to stronger demand in Europe and the United States.
Adding to the challenges, Mercedes and other automakers have had to rely on incentives to maintain sales volumes in competitive markets, even as Beijing has sought to rein in aggressive discounting that erodes profit margins. For Mercedes, the balancing act is particularly delicate: the company must maintain pricing discipline to support its upmarket positioning while also defending its relevance in increasingly crowded, price-sensitive markets.
Despite these hurdles, Mercedes has found some momentum in its electric portfolio. The newly introduced CLA EV sedan was named European Car of the Year at the Brussels International Motor Show, signaling critical recognition and strong consumer interest. Additionally, order books for both the CLA and the upcoming GLC EV are reportedly filled through the second half of 2026, suggesting that the company’s forthcoming models could help stabilize sales and rejuvenate interest in its plug-in lineup.
