Mercedes Sales Drop as China Luxury-Car Slump Deepens

Mercedes-Benz Group AG’s car sales fell due to a deepening slump in China, where once-dominant Western brands are losing ground to new domestic challengers pushing into the luxury segment.

The German manufacturer’s global deliveries dropped 6% to just under 500,000 vehicles, as a deterioration in China outweighed gains in Europe and the US. Its sales there tumbled 27% — a steeper fall than the 19% decline in the fourth quarter — underscoring the competitive challenge in the world’s largest auto market.