Launch the largest offensive in history, Mercedes seizes the window of opportunity.

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Author | Zhou Zhiyu

Traditional luxury cars are structurally slowing down in China, and against this backdrop, Mercedes-Benz’s presence at the Beijing Auto Show is more than just a product launch.

At the opening of the Beijing Auto Show on April 24, nearly 40 display vehicles, the global premiere of the pure electric GLC staged in China, the new generation S-Class China debut, and the CLA 260 L directly launched at a price of 229,000 RMB—Mercedes-Benz has put all its cards on the table at once. The question is, are these cards enough to recapture the window that is closing?

The pure electric GLC answers the question, "Is Mercedes-Benz electric really good?" 800V architecture, CLTC range over 700 kilometers—these specs won't be rare by 2026, but the only two-speed electric gearbox in its class, air suspension and rear-wheel steering passed down from the S-Class, plus a chassis tuned specifically for China, make this combination unmatched among luxury pure electric SUVs. Mercedes-Benz has raised the chassis specifications of the GLC to S-Class level, directly elevating its vehicle class by a notch.

The pure electric GLC is the key model expected to drive volume in this round. The pure electric CLA launched last November saw cumulative sales of only 1,748 units by March this year; Mercedes-Benz board member responsible for Greater China, Thong Oe-Foo, himself admits the CLA was never meant as a sales pillar. Rather, its role is as a technical validation platform, building a technology stack around the MB.OS architecture and intelligent driving system, and collecting user feedback.

The S-Class answers the question, "Can Mercedes-Benz’s intelligent cockpit still compete?" In cooperation with Tsinghua and Zhipu, a multimodal large model VLM was added to the rear entertainment system, able to recognize passenger expressions and gestures, dimming the lights and activating nap mode when passengers yawn. This is the first automotive brand to apply VLM to the rear entertainment system, and the concept is indeed ahead of the curve.

The CLA 260 L, meanwhile, officially pulls the price bracket down below 230,000 RMB, bundling a limited launch package of 308 units with three years of smart driving rights. The approach is already quite internet-style. Three cars, three doubts, all received clear responses.

Placed in the competitive landscape, the pure electric GLC’s most direct competitor at the Beijing Auto Show is the new generation BMW iX3 long-wheelbase version, which also made its global debut there. BMW has strong cards: the new Neue Klasse platform, large cylindrical battery, 800V architecture, over 900km range, Momenta smart driving solution, planned for launch in the fourth quarter. Mercedes-Benz trades 200km less range for a two-speed electric gearbox and S-Class chassis differentiation. This will be the most direct showdown in the luxury pure electric SUV market in the second half of 2026.

On the other side are Chinese brands advancing steadily. The Aito M9 has repeatedly topped sales in the over-500k RMB market, while NIO ES6 has secured a foothold among 300k-level pure electric SUVs. Their smart driving and cockpit experiences have already reshaped consumer expectations. Mercedes-Benz’s reinforcement learning large model smart driving claims to be “driveable nationwide”, with “parking space to parking space” navigation within the year, but Huawei and Xpeng’s urban NOA iterations are on a quarterly cycle. Whether Mercedes-Benz can maintain the same update pace post-delivery is the real test.

In terms of technical roadmaps, Mercedes-Benz has delivered a complete AI evolution blueprint this time: reinforcement learning large models, world models, "physical AI" onboard, bringing Byte Doubao as the agent for cockpit-side intelligence, AutoNavi for travel AI, all going online in the second half of the year.

Among multinational automakers, few can provide such granular timelines and roadmaps. Supporting this blueprint are Mercedes-Benz’s more than 2,000 R&D engineers in Shanghai and Beijing, a team entrusted with unprecedented local decision-making power. Getting AutoNavi’s in-car experience close to the mobile version and integrating Doubao’s large model seamlessly into the cockpit are things that cannot be remotely controlled from Stuttgart.

But a 9-15 month update cycle covering most models is still not considered fast in the Chinese market.

Mercedes-Benz is not retreating across the board. In the million-level luxury sedan market, Mercedes-Benz still holds about 30% share; Maybach GLS grew against the trend by nearly 14% in 2025. The high-end core remains, and the brand’s momentum hasn’t reset to zero.

The real pressure lies in the middle ground. The 300k-500k RMB price range used to be BBA’s turf, now it’s the fiercest battleground for Chinese brand advancement. The very definition of "luxury" is being rewritten. The pure electric GLC is Mercedes-Benz's key move to re-establish its footing in this segment.

The 229k RMB pricing for the CLA is a further test. It opens a new user entry, but also tests the elastic boundary of brand value. In recent years, Mercedes-Benz’s dealer network in China has already endured pricing inversion and inventory pressure. As the price bracket keeps dropping, whether the channels can handle it is another hurdle beyond product strength.

2026 is becoming the collective reckoning year for BBA. Mercedes-Benz will launch more than 15 new models, BMW around 20, and Audi is stepping up with its PPE platform. All three are reshuffling at once, and consumers will face a wave of intensive bombardment from luxury brands over the next 12 months—but if this round doesn’t effectively convert to sales and reputation, the window for next round adjustments will be even shorter.

Thong Oe-Foo mentioned a historical trajectory at the auto show: In 1900, there were over 3,000 car brands worldwide; by 1950, only around 50 remained. Mercedes-Benz is one of those fifty, and the only one that survived from start to finish.

He didn’t predict who would exit in this round, but this curve itself is a judgment. Industry reshuffling is nothing new; survivors are never the fastest, but those who never fall behind in each cycle.

140 years ago, Mercedes-Benz won that elimination race. Whether it can win again this time remains to be seen, but Mercedes-Benz has first shown marathon endurance.

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