Mercedes has plenty of confidence in its ability to compete with Chinese automakers, but that doesn't mean it isn't paying attention to what they're doing right. The world's second-largest luxury brand has openly acknowledged that China's automotive industry is setting an impressive pace, especially in developing new vehicles.

Speaking with Australia's Drive magazine, the company's newly appointed Chief Technology Officer, Jörg Burzer, didn't hold back his praise for the competition. He described the speed of development among Chinese automakers as "outstanding," which is quite an admission from a company with Mercedes' engineering pedigree and 140-year heritage.

However, Burzer was quick to point out that respect for the competition doesn't mean Mercedes believes it's falling behind in every area:

'What is obviously outstanding is the speed of developing in a way that the customer really… in terms of customer focus. Competition is good. It's good for the customer. On the one hand, I have a lot of respect. On the other hand, we also have self-confidence that we can compete with these guys in China but also in Europe.'

But the sales numbers aren't particularly encouraging. Mercedes fell by 19 percent in 2025 to 551,932 cars in China. This year is proving even worse, with deliveries through September dropping by 29 percent to 418,305 units compared to the first nine months of 2025.

The situation isn't much better globally. 2 percent to 1,341,427 units compared to the same period in 2025. Of course, we can't attribute the decline solely to Chinese competition, but nearly all major traditional automakers are struggling.

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