Mercedes Insists The S-Class Is The Benchmark Despite Sales Slump

The harsh reality of 2026 is that luxury sedans aren’t selling particularly well, regardless of the badge. SUVs continue to lure customers away at the expense of the traditional three-box saloon body style. For high-end brands such as Mercedes, waning demand for this vehicle format isn’t the only issue.

Rising competition from Chinese brands is making matters even more difficult, with an influx of far cheaper models that don’t skimp on luxury or technology. The days when Chinese carmakers were the laughingstock of the automotive industry are long gone, as these brands now pose a genuine threat to Western automakers. For decades, historic names such as Mercedes, BMW, and Audi rode the gravy train in China, but sales have been slipping dramatically this decade.

In the case of the S-Class, the numbers don’t look good. Production for all markets has nearly halved in just a few short years. Mercedes built 90,000 cars in 2022 and fewer than 50,000 units last year. Nevertheless, the company’s sales boss told German business newspaper Automobilwoche that the flagship model “still enjoys a very high status in China,” which is still by far the firm’s largest single market.

However, Mathias Geisen admitted the firm faces an uphill battle due to a growing number of adversaries now confronting both the S-Class and Mercedes itself: “The market as a whole is challenging and characterized by intense competition.”

Although the S-Class is slipping, Geisen sees the glass as half full. He claims the W223-generation sedan is still outselling the BMW 7 Series, even after the fully electric i7 is factored in. Models such as the Audi A8, Lexus LS, and Genesis G90 don’t offer an EV version.

‘Even the combustion engine sedan, without the electric EQS, is more successful than its closest competitor with all its powertrain variants combined. In terms of status, technology, and historical heritage, the S-Class is the benchmark. It’s not just a vehicle, but an omnipresent cultural asset.’

Mercedes doesn’t publish S-Class sales figures separately. Instead, the numbers are bundled with those of the EQS, EQS SUV, AMG, Maybach, and the G-Class. These Top-End models generated 268,000 units last year, accounting for a 15-percent share of total volume.

2027 Mercedes S-Class facelift

Photo by: Mercedes-Benz

However, a closer look reveals that demand for the company’s most expensive vehicles fell by five percent compared to 2024. That’s despite the G-Class enjoying its best year ever in 2025, when deliveries reached a record 49,700 vehicles.

The man in charge of sales at Mercedes told Automobilwoche that S-Class buyers are “extremely loyal” and that the facelifted model delivers the changes customers have been asking for:

‘We listened very carefully to what customers want: more status, comfort, safety, intelligence, and individuality. We’ve implemented that. For example, customers can choose from 150 exterior colors or even create their own. With the extensive model update that has now been completed, the S-Class has everything it needs to defend its position as the undisputed segment leader.’

The updated W223 arrives months before BMW launches its own facelifted 7 Series. Mercedes will soon face another challenge, as a BMW Alpina-badged version is all but confirmed to debut in 2026 and rival the Maybach S-Class. However, the latter still holds an advantage in terms of cylinder count, as it continues to offer a V12 engine in the S680.

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Source: Mercedes-Benz

Motor1’s Take: We’re honestly not convinced the S-Class facelift brings the changes people want. Screen overload is even more apparent now that there’s a display for the front passenger. The abundance of stars may also put some buyers off, as the iconic logo now extends to the lights and the grille.

A return to a more subtle S-Class, with a renewed focus on high-end materials, could help lure buyers back into showrooms. Circling back to China, the prestige and heritage of German brands appear to be fading as more buyers opt for domestic luxury cars that cost a fraction of the price. It’s a trend that has heavily impacted nearly every major name in the industry, including Porsche.

It’s too late for this generation of the S-Class to turn things around. Even though Mercedes claims the facelift introduces 2,700 new or reengineered parts, more than half of the vehicle, the damage appears to be done. Hopefully, the W224, expected to arrive toward the end of the decade, will mark a return to form and recapture what made the S-Class an automotive icon ever since the W116 debuted in 1972.

I would make impeccable build quality, less intrusive technology, and a discreet design the top three priorities for the next S-Class.