Mercedes-Benz's Electric Order Books Are Full in Europe While China Deliveries Sink 31%

Mercedes-Benz Q3 deliveries fell 6% as China car sales dropped 31%, while battery-electric sales rose 52% and analysts cut price targets.

Mercedes-Benz is discovering that a sold-out electric lineup at home does little to offset a deepening slump in its most important single market. The Stuttgart automaker's third-quarter 2026 figures, released ahead of its full interim report on October 28, show a company pulled in two directions: battery-electric demand is surging, yet overall volumes and investor sentiment remain under heavy pressure.

A Tale of Two Powertrains

Group-wide deliveries of passenger cars and vans fell 6% year-on-year in the third quarter to 491,700 units. Within the car division alone, the decline was sharper still — 407,200 vehicles handed over, an 8% drop. China accounted for the worst of the damage, with passenger-car deliveries there collapsing 31% over the same period.

The picture flips entirely when the combustion engine is removed from the equation. Battery-electric sales across the group climbed 52% to 78,100 units. At Mercedes-Benz Cars, the all-electric lineup posted a 61% gain, setting a fresh quarterly record. Demand has been strong enough that the electric versions of the CLA, GLC, GLB and GLA are already completely sold out in Europe for the remainder of the year.

Charging as a Revenue Stream

To deepen its foothold in that electric base, Mercedes-Benz launched bidirectional charging on its home market yesterday, working alongside partner The Mobility House Energy. The integrated package pairs a compatible wallbox, a control app and a dedicated electricity tariff, and is aimed at drivers of the electric GLC and the C-Class.

Early adopters are being courted with a sweetener: the first 500 buyers pay 1,990 euros for the charging unit and receive a 250-euro charging credit. The technology positions the fleet to eventually feed battery power back into the home or the grid, letting owners participate in energy markets and earn incentives while charging at home.

Buybacks Keep Running

On the capital side, management continues to lean on share repurchases to cushion the stock. Mercedes-Benz confirmed yesterday that it completed the sixth tranche of its ongoing program, buying back 910,000 of its own shares on the open market between October 5 and 9. That followed 875,000 shares acquired in the prior trading week.

Analysts Trim Targets Ahead of October 28

The market's caution is visible in the numbers. Jefferies analyst Philippe Houchois reaffirmed his Buy rating yesterday but cut his price target to 46 euros from 52, citing a more fragile environment for European manufacturers and the possibility of further provisions, according to dpa-AFX. UBS had already moved on October 9, lowering its target to 45 euros from 50 while keeping a Neutral stance.

The shares currently trade at 39.44 euros, down 35% since the start of the year and hovering just above their 52-week low of 38.90 euros. With the detailed quarterly report and analyst conference set for October 28, attention now turns squarely to whether margins in the car segment can hold up — and whether record electric demand can outrun the drag from China.