Brussels has argued that Beijing gives manufacturers an unfairly high amount of subsidies. China has increased tariffs on European food and drink products as well as cars in response.
It was reported on Thursday that Beijing had asked electric vehicle manufacturers to pause their expansion in the EU as tensions mount.
As well as greater competition, Mercedes is suffering from a slowdown in its home market. Germany suffered a “spectacular” drop in EV sales in August, according to the European Automobile Manufacturers’ Association, with volumes of battery-powered cars down by nearly 70pc.
While Mercedes’ sales of all-electric vehicles plunged, it sold 10pc more plug-in hybrid cars, which hit 44,688 over the third quarter of 2024.
The Stuttgart-headquartered company said total sales fell by 6pc to €78.5bn (£65.5bn) in the quarter amid a downturn in demand for its most expensive cars such as S-Class and Maybach that has knocked its profitability. Earnings before interest and taxes plunged by 48pc to €2.52bn.
Sales of its more expensive cars have been hammered by an economic slowdown in China that has caused a cutback in luxury spending.
