Mercedes Sees Prolonged Slump in China Demand on Poor Economy

Mercedes-Benz Group AG expects the Chinese market to remain tough as economic strains continue to deter customers from buying premium vehicles.

A drawn-out property crisis, along with high youth unemployment, is weighing on demand for cars, the company’s China chief, Oliver Thöne, said during a media roundtable at the Auto China show. Higher gasoline prices linked to the Iran conflict have also sapped spending power, he said.