Mercedes Sales in China Slide 27% as Demand Crisis Deepens (2)

Mercedes-Benz Group AG’s China sales tumbled 27% in the third quarter to their lowest level in almost a decade as luxury demand in the country remains weak and local manufacturers dominate on electric vehicles.

The slump in China — the worst quarterly sales performance there since 2016 — dragged down the company’s global shipments, which fell 12% in the period. BMW AG’s deliveries in the country also declined.

Germany’s automakers are losing ground in China to homegrown rivals such as BYD Co. and Xiaomi Corp., whose feature-packed EVs are undercutting them on price. Fierce competition in the ...