Mercedes Rethinks China Playbook as Q3 Deliveries Drop 31%

Mercedes-Benz is taking a hard look at how it does business in China after third-quarter deliveries there fell 31%, according to the latest China Automotive Newsletter roundup. A drop of that size isn’t a blip — it’s the kind of number that forces a boardroom rethink of an entire regional strategy.

The German marque isn’t alone in feeling the squeeze. China’s market has become a brutal proving ground for legacy premium brands, squeezed on one side by aggressive local EV makers and on the other by a consumer base that has cooled on imported luxury nameplates. Mercedes’ response, per the report, is a full review of its China operations rather than a tweak at the edges.

Chery Wants to Build Abroad, Not Just Sell Abroad

While Mercedes regroups, Chery is pushing in the opposite direction. The Chinese automaker is aiming to build 70% of the vehicles it sells overseas outside China by 2030 — a striking shift from the export-heavy model most Chinese brands have relied on.

The logic is straightforward enough: local production sidesteps tariffs, shortens supply chains and softens the political friction that comes with shipping thousands of cars into foreign markets. Whether Chery can hit that 70% target is another question, but the ambition alone signals where the industry’s wind is blowing.

Baidu and Freenow Take Aim at London

On the autonomy front, Baidu’s Apollo Go and Lyft-owned Freenow are working toward a commercial driverless service in London by 2027. It’s an eyebrow-raising pairing — a Chinese robotaxi giant teaming up with a European mobility platform — and it puts London squarely in the race to host paid autonomous rides.

Commercial robotaxi launches have a habit of slipping, though. Regulatory approval, insurance frameworks and public acceptance all have to fall into place before a single fare-paying passenger climbs in.

• Mercedes: full review of China business after 31% Q3 delivery decline
• Chery: targets 70% of overseas sales built outside China by 2030
• Apollo Go + Freenow: commercial driverless service planned for London in 2027
• VW Group China: permit secured to trial Level 3 autonomous driving on public roads in Hefei

VW Gets the Green Light in Hefei

Volkswagen Group China has secured a permit to test Level 3 autonomous driving on public roads in Hefei, the report notes. Level 3 is the awkward middle ground of autonomy — the car handles the driving, but a human still has to be ready to take over. Getting permission to run those trials on open roads is a meaningful step for VW’s local software efforts.

Taken together, the four stories paint a market in flux: a European premium icon on the back foot, a Chinese challenger going global with a local-production twist, and autonomous driving bets landing on both European and Chinese soil. China, as ever, sits at the centre of all of it.