The German brand is going through one of the most critical periods in its history in the Chinese market. Its ambitious transition towards electrification is seriously threatened by the poor sales of its electric models, especially the CLAwhose commercial failure raises serious doubts about the future of the imminent GLC electric.
Layoffs and economic pressure
Since February 2025, Mercedes-Benz has carried out two rounds of layoffs at its facilities in China. This measure responds to the notable drop in its profits, caused by a continuous decline in sales. Although management has invested heavily in localization strategies and improving the competitiveness of its offering, the fruits of these efforts have so far been in vain.
Mercedes-Benzwhich has traditionally relied heavily on sales of internal combustion vehicles, sees this segment contracting very sharply, while its electric alternatives fail to connect with Chinese consumers.
The complete failure of the electric CLA
Presented in November 2025 as the most efficient and intelligent model in the range, the electric CLA incorporated cutting-edge technologies. It had the MB.OS architecture integrated with the ByteDance language model and a sophisticated driving assistance system developed in collaboration with Momenta. The brand tried to bring the product closer to the local public through marketing actions such as extensive tests on highways and a prominent presence at events such as the China Open.
In April 2026, the access version, the CLA 260 L, was introduced, with a price that started above 29,500 euros. This model incorporated an 800-volt platform, a 40-millimeter extension in the wheelbase and a 60 kWh LFP battery.
Despite its technical specifications, the market has been very cold with this model. The data reveal alarming figures: in February only 21 units were sold, in March 358, in April 52 and in May 161. With a cumulative total that does not reach 5,000 units, some Chinese media announce that the company is seriously considering the possibility of suspending production of the electric CLA. The objective would be to control the stock and free up production capacity for the launch of the electric GLC.
The electric GLC, a bet under extreme pressure
Given the setback of the CLA, Mercedes-Benz now concentrates its hopes on the electric GLCthe first vehicle built on its dedicated MB.EA platform. This model was presented at the Beijing Motor Show in April and its official launch is scheduled for July 8with a price that starts at the current exchange rate at about 45,000 euros.
Chinese market experts are skeptical about its chances of success. The Chinese automobile market is going through a strong correction. The Chinese Passenger Car Association (CPCA) has drastically revised its forecast, going from an expected drop of 1% to a decline of 11%which is equivalent to almost 2.6 million fewer vehicles for this year.
Fierce competition and widespread decline
The electric GLC will arrive in an extremely crowded segment. It will have to fight with models such as the BMW iX3, the Audi Q6L e-tron and the strong presence of local brands such as Aito, Li Auto, Nio, Leapmotor and Xpeng, which continue to accumulate significant volumes.
Over the past twelve months, Mercedes-Benz’s monthly sales in China have shown consistent year-on-year declines. In May alone, the brand delivered 25,699 vehicleswhich represents a 34.9% less compared to the same month of the previous year.
Will Mercedes be forced to rethink its presence in China as other European manufacturers have already done or will it make any of its models succeed?
