Mercedes-Benz Cuts Retail Prices by ~10% on Select Models to Ease Dealer Pressure

On February 1, Mercedes-Benz China adjusted the manufacturer's suggested retail prices (MSRP) for certain models, reducing them by approximately 10%. This move aims to alleviate challenges faced by dealers, including excessive inventory, price inversions (where wholesale prices exceed retail prices), prolonged rebate payment cycles, and intense pressure from business performance evaluations. On February 2, the Automobile Dealers Association under the All-China Federation of Industry and Commerce stated that it had previously submitted three proposals to Mercedes-Benz, urging the company to optimize its business policies, curb price inversions, and avoid imposing unreasonable inventory targets on dealers. Although this latest adjustment does not fully meet dealers' demands, it is expected to help free up working capital and is seen as a pragmatic step by Mercedes-Benz toward improving its dealer policies—potentially enhancing both its competitiveness in the Chinese market and the operational conditions of its dealers.