【By Observer Net, Qi Qian】

According to Reuters and AFP, on October 29, German luxury car manufacturer Mercedes-Benz announced its third-quarter performance.

Business is not easy, and Mercedes is sighing. Currently, Mercedes is having a tough time in the two major markets of China and the United States: in China, Chinese automakers are rising rapidly, and competition is becoming increasingly fierce; in the United States, consumers are tightening their belts and reducing spending.

Regarding this, Ola Källenius, CEO of Mercedes, said that in the face of fierce competition in the global automotive market, Mercedes must have "ferocity", and only by adapting like an "animal" can it survive and thrive.

"Animals that can adapt will survive and flourish in evolution," Källenius told investors that day, "we are guiding the company to cope with a challenging business environment," while pointing out that Trump's tariff policies, fierce competition in the Chinese market, and the electric vehicle transition are the main challenges.

The report stated that according to Mercedes' latest report, the profit margin of its core automotive business exceeded expectations, with growth in sales of premium models helping to offset non-recurring costs related to layoffs and the impact of declining sales in the Chinese market. In the third quarter, the sales return rate of Mercedes' automotive division was 4.8%, higher than 4.7% in the same period last year, and above the average expected 3.9%.

This performance was due to a 10% increase in sales of premium models, and a free cash flow of approximately $1.6 billion, prompting the company to resume its stock repurchase program. Affected by this news, the company's stock reached a seven-month high.

However, the report showed that the company's European sales increased slightly in the third quarter, but sales in China fell by 27% year-on-year, and sales in the U.S. market dropped by 17%. This data proves the difficult challenges that Mercedes faces in its most important markets: local Chinese automakers are engaged in fierce competition, and the Trump administration's significant increase in import tariffs also pose pressure.

Mercedes stated in the report that the situation in the premium and luxury segments of the Chinese market remains tense, with foreign manufacturers reporting significant declines in unit sales.

"In the short term, the extremely intense competition in the Chinese market will not disappear soon," Källenius believes that the company faces a "long-term challenge" in the Chinese market, but at the same time, he said the company will focus on shifting its cost structure to China, and will also launch technological features to attract customers.

CEO of Mercedes-Benz, Olaf Benz, Mercedes-Benz official website

In August this year, Källenius said in an interview that Mercedes is currently experiencing rain, hail, storms, and snow. He attributed three main influencing factors to: the impact of American tariffs, competition in the Chinese market, and the challenges of electric vehicle transformation being longer than expected.

Among them, Källenius compared the Chinese market to Darwinian competition. He emphasized, "There are more than 100 car manufacturers competing against each other in the Chinese market. The purchase intention in the premium car market that Mercedes highly values has been very low in recent years. All these factors lead to huge competitive pressure. In China, this is called 'involution'."

"The only way out of this situation is integration, which will consume a lot of cash and corporate value, even affecting companies at the top of the pyramid. We will see a complete transformation of the service provider landscape, but it is difficult to predict how long it will take," Källenius added.

On September 9, the 2025 IAA MOBILITY (IAA MOBILITY 2025) International Automotive and Smart Mobility Expo was held. On the eve of the opening, industry institutions had already described this exhibition as "a struggle for dominance in the electric vehicle field between Germany and China."

Markus Schaefer, Chief Technology Officer of Mercedes-Benz, said on September 8 that the company does not need to fear competition from China in the electric vehicle field, but is working hard to reduce costs in the price war. "We have already entered the top tier in the electric vehicle field, so we do not need to fear China," he added, stating that the company is working with its Chinese development team to reduce costs.

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Original: https://www.toutiao.com/article/7566844954959184399/

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