Mercedes-Benz is responding to the rapid development pace of Chinese automakers by implementing a new AI-driven system called PLM.AI. This digital backbone integrates data across vehicle development, purchasing, production, and sales to streamline internal processes.
The company expects the PLM.AI system to reduce overall vehicle development time by up to 30 percent. Furthermore, Mercedes anticipates that AI-powered simulations will decrease the necessity for physical testing by up to 50 percent over time, while individual engineering efficiency could improve by 50 percent.
The manufacturer faces significant sales challenges. In China, deliveries dropped 19 percent in 2025 to 551,932 vehicles, with a further 29 percent decline to 418,305 units in the first nine months of 2026. Global sales also fell 9 percent in 2025 to 1,801,291 cars, with a 7.2 percent decrease to 1,341,427 units in the first three quarters of 2026.
To counter these trends, Mercedes is planning a product offensive featuring new models, including an entry-level vehicle, the next-generation CLA, an electric E-Class, and a smaller G-Class. AMG-specific updates include a six-cylinder C53, a new GT Black Series, and an open-top G63.
