Mercedes-Benz reports Q1 2025 sales drop, sees hybrid gains amid EV slowdown

Mercedes-Benz sold 529,200 vehicles in Q1 2025, down 7%. EV sales dropped, hybrids rose 8%, and CLA launch is set to drive future recovery.

In the first quarter of 2025, Mercedes-Benz Group sold 529,200 vehicles worldwide—a 7% decrease compared to the same period last year. Despite a challenging global market, the company appears to be leaning on its hybrid and premium segments, which continue to show resilience and could help cushion the impact of declining sales in other areas.

The core of the sales came from passenger cars, with 446,300 units sold (–4%). Europe and China recorded declines of 7% and 10% respectively, while the U.S. managed a 1% growth, and South Korea stood out with a remarkable 40% surge.

Battery electric vehicle (BEV) sales dropped more significantly—by 14% for passenger cars and 10% across the group. The decline is attributed largely to the phase-out of the smart EQ fortwo and shifts in the model portfolio. In contrast, plug-in hybrid sales rose by 8%, driven mainly by demand in the U.S. market.

The Top-End segment, including Mercedes-AMG, Maybach, and the G-Class, maintained strong momentum: AMG saw a 17% rise, and the G-Class grew by 18%. The premium vehicle share reached 14.6%, slightly above last year’s 14.4%.

The vans business—Mercedes-Benz Vans—saw a sharper drop of 21% (or 16% excluding the discontinued Metris model in North America). Yet, fully electric van sales jumped 59%, representing 6% of total van sales in Q1.

Looking ahead, the company is banking on a new wave of models. At the forefront is the all-new Mercedes-Benz CLA, launching on the MMA platform. The electric version is scheduled for release in Europe in autumn 2025, followed by a hybrid variant. This marks a key move to regain traction amid intensifying competition and evolving consumer trends.

Mercedes-Benz is also investing in the Maybach brand. The Mercedes-Maybach SL began European sales in Q1, and the brand’s first exclusive lounge is set to open in New York next week, offering personalized experiences for its customers.

The sales decline in China is linked to the growing preference for domestic brands and weakening demand for imported luxury models. In response, Mercedes-Benz is expanding its portfolio and adapting more closely to regional market dynamics.

Source: mercedes-benz.com