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The article discusses the global decline in Mercedes-Benz's sales, particularly in the Chinese market, where sales dropped by 31% in the third quarter of 2026 due to increasing local competition. Meanwhile, Chinese companies like BYD are expanding into the European market, accounting for about 12% of new car sales in August 2026, driven by rising demand for competitively priced hybrid vehicles. The European Commission is considering imposing temporary restrictions on the import of hybrid cars from China to protect the European industry from these increasing influxes. Negotiations between the European Union and Beijing on import regulations and tariffs are ongoing, reflecting a high level of competitive tension between European and Chinese companies in the global automotive market.
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