Mercedes sold 737,200 vehicles in China last year, making it the company’s largest single market

Mercedes-Benz is preparing for a major investment in its Chinese operations, focusing on boosting local SUV sales. China has always been a key market for luxury car brands, with Mercedes selling 737,200 vehicles there last year—outpacing the 659,400 units sold in Europe and the 298,000 in the U.S. However, despite a 7% sales increase in Europe for 2023, China experienced a 2% decline, worsening in Q4 with an 8% drop in sales.
From January to July, Mercedes reportedly sold 416,000 vehicles in China, a decline of over 9% compared to the same period last year. In response, the company, along with its joint venture partners, is preparing investments totaling €1.8 billion ($1.9 billion).
A source recently informed Handelsblatt that an extended-wheelbase version of the popular GLE is in development. This is notable not only because long-wheelbase (LWB) vehicles are popular in China, but also because this model will be developed and manufactured locally, unlike the standard GLE which is imported from the U.S. The new GLE is expected to have its wheelbase extended by approximately 11.8 inches (300 mm).

Mercedes-Benz is also set to broaden its Chinese lineup with the next-generation CLA, which will be offered in both electric and internal combustion engine versions. Additionally, an all-electric V-Class MPV is expected next year, reflecting Mercedes’ commitment to expanding its range of offerings.
However, one model struggling in China is the Mercedes-Benz EQS. According to the German publication, only 663 units were sold in the first seven months of this year, less than half of last year’s sales. This poor performance is largely attributed to the ongoing price war among EV manufacturers in China, a competition in which Mercedes has not been involved.
