Recently, China's State Administration for Market Regulation's Defective Product Recall Center issued three separate recall announcements concerning Mercedes-Benz, covering a wide range of models including imported A-Class, CLA-Class, and GLA-Class vehicles, as well as domestically produced EQC, C-Class, and GLC SUVs. The total number of affected vehicles is approximately 16,100. This latest wave of recalls adds to the growing concerns surrounding the Mercedes-Benz brand, which is already struggling with sales in the Chinese market.
According to the official recall notices, Mercedes-Benz (China) Automotive Sales Co., Ltd. and Beijing Benz Automotive Co., Ltd. initiated recalls for different models and production batches. Among them, certain locally manufactured C-Class and GLC SUVs were found to have been fitted with incorrect fuse boxes during prior recall repairs, potentially leading to system malfunctions or even a fire risk. Some imported S-Class and EQE models are also being recalled for the same issue.
In addition, some imported A-Class, CLA-Class, and GLA-Class vehicles are being recalled due to nozzle shapes on the turbocharger housings that may not meet specifications, posing a potential emissions hazard. Most notably, Beijing Benz is recalling a large number of domestically produced EQC electric SUVs due to a design flaw in the battery management system software, which could lead to thermal runaway in extreme situations-posing a fire risk.
This recall comes at a time when Mercedes-Benz is facing multiple headwinds in China. Just one day earlier, on June 12, the brand experienced a major failure in its in-car navigation system. The outage affected all vehicles equipped with the MBUX 2.0 and 3.0 systems, including the C-Class, E-Class, S-Class, and EQ models. Many owners reported being unable to use navigation, Apple CarPlay, and other key functions. For some vehicles, normal operation wasn't restored until the following day, significantly inconveniencing users. This incident has further tarnished Mercedes-Benz's reputation among Chinese consumers.
In recent years, Mercedes-Benz's sales performance in China has been on a downward trend. In 2024, the company sold 683,600 vehicles in China, a 7.3% year-on-year decline. In the first quarter of 2025, sales fell another 10% year-on-year. To stimulate sales, Mercedes-Benz has implemented price-cutting strategies, but results have been underwhelming. Core models such as the C-Class, GLC, and E-Class-once the pillars of Mercedes' success in China-have all seen repeated price reductions, yet continue to lose ground.
Mercedes-Benz is under increasing pressure in the fiercely competitive Chinese market, especially with the rapid rise of domestic brands and new energy vehicles (NEVs). According to data from the China Passenger Car Association, local brands now hold 64% of the retail market share, while joint ventures are steadily losing ground. The NEV boom has intensified the pressure on traditional luxury brands, and Mercedes-Benz has notably lagged in its electrification strategy. The company's global EV sales have been declining, and its presence in China's EV sector remains weak.
In an effort to reverse its fortunes, Mercedes-Benz has laid out a series of strategic adjustments. These include launching multiple new products across all segments and drivetrains between 2025 and 2027, increasing investment in China, releasing market-specific models, and implementing cost-reduction measures such as layoffs and production line optimization. However, whether these efforts will be enough to turn the tide remains uncertain.
The latest recall actions and the recent infotainment system failure have undoubtedly further damaged Mercedes-Benz's image in China. To regain the trust and support of Chinese consumers, the automaker must act swiftly to resolve these issues and demonstrate its commitment to quality and customer satisfaction.
