Core Insights - Mercedes-Benz's global automotive and van sales declined by 9% year-on-year, totaling 547,100 units in Q2 2025, with a significant drop in battery electric vehicle (BEV) sales by 18% to 41,900 units [1][3] - The North American market saw a 14% decrease in sales, while the Chinese market experienced a severe decline of 19%, contributing significantly to the overall performance downturn [1][3] Sales Performance - Total sales for Mercedes-Benz Group in Q2 2025 were 547,100 units, reflecting a 3% increase from Q1 2025 but a 9% decrease compared to Q2 2024 [3] - BEV sales specifically dropped by 8% from Q1 2025 and 18% from Q2 2024, totaling 41,900 units [3] - Sales by segments showed a mixed performance, with the Top-End segment remaining flat at 64,800 units, while the Core segment increased by 4% to 273,800 units [3] Regional Sales Breakdown - In Europe, sales increased by 7% to 159,700 units, with Germany showing a notable 16% rise [3] - Asia's sales decreased by 5% to 189,200 units, with China experiencing a significant 19% drop to 140,400 units [3] - North America saw a 5% increase in sales to 80,600 units, with the U.S. market up by 11% [3] Quality and Trust Issues - Mercedes-Benz faced quality and trust crises, including recalls affecting 16,100 vehicles due to safety hazards related to the fuse box and battery management system [3][4] - The company also dealt with widespread issues in its vehicle navigation systems, impacting several popular models [4] Strategic Adjustments - To address market changes, Mercedes-Benz plans to reduce production costs by 10% by 2027 and is focusing on enhancing its electric vehicle lineup [5] - The company aims to launch new models, including pure electric and plug-in hybrid vehicles, starting in 2025, and plans to introduce several models tailored for the Chinese market [5] - Despite challenges, Mercedes-Benz remains committed to the Chinese market, with plans for additional investments exceeding 14 billion RMB to enhance local product offerings [5]