The brand-new pure electric GLC, a pivotal model in Mercedes-Benz's electrification strategy for the Chinese market, saw its sales falter just three months after its debut. September sales reached 1,325 units, a 20.6% decline from August's 1,668 units.

The broader picture is even more concerning. In Q3, Mercedes-Benz delivered 86,800 passenger vehicles in China, marking a 31% YoY drop. For the first three quarters, cumulative sales hit 297,000 units, down 29% YoY. Notably, Zhang Mingxia assumed the role of Executive Vice President of Sales at Beijing Mercedes-Benz Sales Service Co., Ltd. on April 1, directly overseeing sales operations. Since her appointment, sales have declined by 30% and 31% in the two full quarters, respectively.

New models have failed to arrest the decline, and leadership changes have not reversed the downward trend. For Mercedes-Benz, this is no longer a short-term fluctuation but an accelerated downward spiral that has persisted for years, reaching a new low in 2026.

Pure Electric GLC: Sales Falter Just Three Months Post-Launch

The all-new pure electric GLC was unveiled in Beijing on July 8 this year.

For Mercedes-Benz, this model carries immense significance. Built on the brand's MB.EA dedicated pure electric platform, it represents Mercedes-Benz's first mass-produced model designed specifically for electric architectures, moving away from the "retrofitted electric" approach. The launch of the all-new pure electric GLC is widely regarded as Mercedes-Benz's "electrification counterattack" in China. The new model, equipped with urban and highway piloted driving assistance co-developed with Momenta, starts at 299,900 yuan.

Prior to the launch, Zhang Mingxia, Executive Vice President of Sales at Beijing Mercedes-Benz Sales Service Co., Ltd., told the media, "The Mercedes-Benz pure electric GLC is a versatile SUV tailored for the Chinese market—luxurious, intelligent, reliable, and trustworthy. We hope that through this product, more Chinese users will recognize Mercedes-Benz's strength and commitment in the era of electrification." This statement underscores Mercedes-Benz's high expectations for the all-new pure electric GLC.

However, the sales data since the new model's launch have fallen short of both market and Mercedes-Benz's expectations.

Third-party retail data indicates that the all-new pure electric GLC sold 1,325 units in September this year, a 20% MoM decline. Sales in July and August stood at 1,436 and 1,668 units, respectively. Just three months after its launch, sales have reversed course, with monthly volumes hovering around the thousand-unit mark. Compared to Mercedes-Benz's overall monthly retail sales of over 20,000 units during the same period, this highly anticipated model contributed less than 7%.

This performance has dealt a significant blow to Zhang Mingxia, the newly appointed sales leader for Mercedes-Benz in China.

On April 1 this year, Zhang Mingxia took over as Executive Vice President of Sales at Beijing Mercedes-Benz Sales Service Co., Ltd., directly overseeing sales operations. Her appointment was part of a broader management reshuffle at Mercedes-Benz in China: On February 14, 2026, Mercedes-Benz announced a comprehensive management adjustment in China; on March 1, Britta Seeger succeeded Jianjun Duan as President and CEO; and on April 1, Zhang Mingxia assumed her sales role.

However, the performance over the past six months indicates that the arrival of the new leadership duo, Britta Seeger and Zhang Mingxia, has not reversed the weakening sales trend for Mercedes-Benz in China.

Sales Continue to Decline by 30% Post-Leadership Change; Mercedes-Benz's China Crisis Deepens

In Q1 2026, Mercedes-Benz's sales in China fell 26.9% YoY. After Zhang Mingxia took over sales operations, the sales decline widened to 30% in Q2 and further expanded to 31% in Q3. For the first three quarters of this year, cumulative sales in China reached 297,000 units, down 29% YoY. In September alone, sales in China stood at 24,000 units, a 40% plunge from 40,000 units in the same period last year.

Mercedes-Benz attributes the sales decline in China to two primary factors: intensifying market competition and the production ramp-up period following the iteration of key models.

However, Mercedes-Benz's current sales slump did not begin in 2026 but is a continuation of its multi-year downturn in China. Around 2021, Mercedes-Benz still maintained annual deliveries of over 750,000 units in China. In 2023, sales reached approximately 765,000 units, roughly flat with 2022. In 2024, sales dropped to 714,000 units, down 7% YoY. In 2025, sales further fell to 575,000 units, a 19% decline.

Throughout this period, the magnitude of the decline has been worsening: from -7% in 2024 to -19% in 2025, and then to -29% in the first three quarters of 2026—with no signs of stabilization.

Accompanying the sales collapse, Mercedes-Benz's dealership network in China is also under immense pressure. In early 2026, the All-China Federation of Automobile Dealers communicated several times with Mercedes-Benz China regarding "systemic" issues such as high dealer inventory, price inversions, and delayed rebates, but to no avail. Eventually, the federation chose to escalate the matter to Mercedes-Benz's German headquarters. Shortly after, Mercedes-Benz China underwent a major management shakeup.

The stability of the dealership network is a core asset for luxury brands, and this asset is now at risk. Shortly after taking office, Zhang Mingxia stated in a media interview that while dealers need short-term policy incentives, long-term growth confidence can only rely on products.

She also noted that the all-electric GLC, as the starting point for Mercedes-Benz's core product offensive in the second half of the year, would comprehensively streamline the new energy vehicle launch process and customer journey, paving the way for subsequent electric models and providing stability for the dealership network. However, the underperformance of the pure electric GLC has not halted Mercedes-Benz's sales decline, meaning Zhang Mingxia's assertion that "long-term growth confidence can only rely on products" has yet to be validated.

Unable to Reverse the Crisis: Multiple Challenges in China Persist

The challenges faced by Mercedes-Benz in China cannot be resolved simply by changing a sales leader. One of its core issues remains the long-standing problem of sluggish electrification. In its early years in China, Mercedes-Benz's EQ series relied heavily on the "retrofitted electric" approach, resulting in product offerings that lagged behind market expectations. Additionally, limited local R&D authority and slow iteration cycles prevented timely adaptation to the rising electrification and intelligence demands of Chinese consumers.

A stark contrast is evident: In Q3, Mercedes-Benz's global sales of pure electric models surged 61% YoY, reaching a record high. However, the global growth stands in stark contrast to the situation in China, once again highlighting that Mercedes-Benz's problem is not an inability to build good electric vehicles but rather a failure to deliver models that Chinese consumers want. Objectively speaking, the all-new pure electric GLC already offers a highly competitive feature set within the traditional luxury brand framework.

Mercedes-Benz is also accelerating its embrace of Chinese intelligent driving technologies. However, even with a dedicated pure electric platform and local intelligent driving support, this move comes too late. Currently, in the premium new energy vehicle market above 300,000 yuan, traditional luxury brands like BBA have long been absent, allowing domestic premium new energy brands to capture market share. AITO, Zeekr, Li Auto, NIO, and others have all established their influence in the high-end new energy market.

In September this year, the retail penetration rate of new energy vehicles in the domestic market reached 62.8%, while Mercedes-Benz's new energy vehicle penetration rate in China stood at a mere 5.8%. Mercedes-Benz's luxury halo is rapidly fading in China's new energy competition.

For Zhang Mingxia, the launch of the all-new pure electric GLC represents a critical card in her tenure, yet this model has shown signs of fatigue just three months after its debut. It is understood that Mercedes-Benz has a new wave of products planned for the Chinese market already in the pipeline. In mid-September, the locally produced long-wheelbase GLE was launched, and over the next 6 to 12 months, AI-powered cockpits and piloted driving assistance will be rolled out across most of the product lineup—this is the timeline Mercedes-Benz has provided.

However, product realization still requires time, and whether the company can deliver a turnaround remains to be seen. The mission entrusted to the all-new pure electric GLC—to pave the way for subsequent electric models and provide stability for the dealership network—has taken an unsteady first step.