Mercedes Benz reported a 9 percent decline in fully electric vehicle sales during 2025, registering 168800 units and widening the distance from rival BMW. BMW strengthened its position by increasing electric vehicle deliveries by 3.6 percent to 442072 units. Pressure on Chief Executive Officer Ola Kallenius has intensified as the company struggles to keep pace in the rapidly evolving electric sector.
Overall vehicle sales at Mercedes Benz slipped 9 percent to 1.8 million units in 2025, marking one of the weakest annual results in recent years. Market conditions in China proved particularly difficult, as deliveries dropped 19 percent amid fierce competition from domestic manufacturers. Core segment sales, including key models such as the E Class, contracted 10 percent worldwide to 1.05 million units.
The widening gap with BMW has raised concerns inside the company, and reliance is increasing on upcoming models expected to boost interest in its plug in lineup. A year that featured record sales for the iconic G Class also included challenges posed by United States tariffs and intensifying pressure from Chinese luxury electric vehicle brands.
China remains a significant point of strain for the German automaker, with companies like BYD gaining ground while foreign manufacturers lose share in the worlds largest auto market. Weak demand for luxury models has also been affected by the prolonged downturn in the Chinese property sector.
