Mercedes-Benz reported a 27% YoY drop in China sales for Q3, its worst performance in the key market since 2016. The German automaker sold just 125,100 cars in China last quarter, dragging down global shipments by 12%. Mercedes is losing ground to local rivals like BYD, whose feature-packed EVs are more competitive on price. The intense competition is eroding prices and profit margins for luxury brands, with BMW and Porsche also facing weak China sales. Mercedes saw U.S. deliveries fall 17%. Its higher-end EQS and EQE electric sedans have largely flopped, raising doubts about CEO Ola Källenius’ strategy.