Mercedes reports decline in China sales during third quarter

Mercedes-Benz (OTCPK:MBGAF [https://seekingalpha.com/symbol/MBGAF]) on Tuesday reported declining sales for the third quarter in China as the German luxury automaker faces weak consumer demand and increased competition from local manufacturers.

The company’s China sales tumbled 27% to 125,100 cars in the third quarter, to their lowest level in almost a decade. Meanwhile, its sales in the U.S. fell 17% YoY to 70,800 vehicles.

“While sales in Europe, South America and Gulf States are performing well, our sales in the third quarter were impacted by the market conditions in China,” said Mathias Geisen, Member of the Board of Management of Mercedes Benz Group AG. Marketing & Sales.

The company also cited tariff policies as a major factor that affected sales in both the U.S. and China. President Trump, in April, imposed a 25% duty on imported cars and parts entering the U.S., though this was later reduced to 15% for European Union imports.

Mercedes, which is one of several German auto manufacturers that cut guidance this year, said stock levels in the U.S. were carefully calibrated to mitigate the tariff impacts.

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