Mercedes-Benz China Dealers Sound Alarm: Soaring Inventory, Unpaid Rebates—Urgent HQ Intervention Needed

The China Automobile Dealers Association (CADA), affiliated with the All-China Federation of Industry and Commerce, recently reported that numerous Mercedes-Benz dealers in China are grappling with severe challenges, including excessively high inventory levels, price inversions (selling below cost), prolonged rebate payout cycles, and overly stringent business performance targets, placing sustained financial pressure on their operations. On December 9, 2025, the association sent a letter to Mercedes-Benz China, urging it to reasonably manage inventory levels, optimize its rebate mechanism, and adjust performance evaluation targets. Although Mercedes-Benz China responded on December 26, no substantive resolution has been achieved. Subsequently, the association sent two additional letters to Mercedes-Benz’s global management team on January 6 and January 23, 2026, calling for urgent attention to dealers’ concerns in the Chinese market and immediate remedial actions. To date, neither Mercedes-Benz China nor its global leadership has provided an effective response.