The upcoming Mercedes-Benz GLC. Credit: Jiemian Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member Mercedes-Benz is facing challenges in its electrification transition within the Chinese market, as lacklustre sales of its pure electric CLA model cast a shadow over the upcoming launch of the pure electric GLC, as reported by Jieman News. Since February 2025, the German automaker has implemented two rounds of layoffs in China, driven by declining profits stemming from shrinking sales. Despite management’s efforts to leverage localisation strategies and enhanced product competitiveness, the results have been underwhelming. The CLA struggles Launched in November 2025, the pure electric CLA was positioned as Mercedes-Benz’s “most efficient and intelligent” model, featuring the MB.OS architecture integrated with ByteDance’s Doubao large language model and an advanced pilot-assist system developed in partnership with Momenta. To bolster its market entry, the company even adopted local marketing tactics, such as long-distance highway testing and high-profile placements at the China Open. In April 2026, Mercedes-Benz introduced the entry-level CLA 260 L at a starting price of 229,000 yuan (33,700 USD). Despite offering an 800V high-voltage platform, a China-exclusive 40mm wheelbase extension, and a 60kWh lithium iron phosphate (LFP) battery (compared to the 89kWh ternary lithium battery in higher trims), the model failed to gain traction. Data quoted by Jiemian indicates that monthly sales from February to May 2026 were only 21, 358, 52, and 161 units, respectively. With total sales failing to reach 5,000 units, insiders suggest to Jiemian that Mercedes-Benz has discussed suspending production of the electric CLA to manage high inventory levels and reallocate production capacity toward the upcoming electric GLC. Mercedes-Benz electric CLA. Uncertain future for the electric GLC Mercedes-Benz is now pinning its hopes on the pure electric GLC, the first model built on its dedicated MB.EA electric platform. The vehicle, which debuted at the Beijing Auto Show in April, is scheduled for official launch on July 8, with pre-sales starting at 349,000 yuan (51,300 USD). Key specifications of the electric GLC include: Performance: 800V high-voltage platform and eATS 2.0 electric drive system (available in single-motor RWD and dual-motor AWD). Interior & tech: 39.1-inch integrated MBUX hyperscreen, AI-powered voice assistant, and L3-level conditional autonomous driving capabilities. Dimensions: A wheelbase extended to 3,027 mm. However, analysts remain sceptical about the GLC’s prospects. The Chinese automotive market is currently undergoing a significant correction, with the China Passenger Car Association (CPCA) revising its annual sales forecast from a 1% decline to an 11% drop – representing a reduction of nearly 2.6 million vehicles. The electric GLC will contend with the upcoming BMW iX3 (based on the Neue Klasse platform) and the Audi Q6L e-tron, which features Huawei’s Qiankun intelligent driving system. Domestic rivals, including models from Aito, Li Auto, Nio, Leapmotor, and Xpeng, have also continued to secure strong order volumes. Mercedes-Bens sales performance in China. Over the past 12 months, Mercedes-Benz, which relies primarily on internal combustion engine (ICE) vehicle sales, has seen its monthly sales in the Chinese market decline year-on-year due to a sharp drop in ICE vehicle sales. In May, it sold 25,699 vehicles in China, a 34.9% decrease compared to the same period last year.
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