Despite a significant drop in demand for traditional luxury sedans, Mercedes-Benz insists the S-Class remains the industry benchmark. While sales numbers have nearly halved in recent years – falling from 90,000 units in 2022 to under 50,000 last year – the company cites continued dominance over competitors like the BMW 7 Series, even including its electric i7 variant.
The Shifting Luxury Market
The decline of the S-Class reflects a broader trend: consumers are increasingly favoring SUVs over the classic three-box sedan design. This shift is compounded by the rise of Chinese luxury brands, which offer competitive technology and features at significantly lower price points. For decades, established Western automakers enjoyed a strong position in China, but that dominance is eroding as domestic brands gain market share.
The reality is that luxury sedans aren’t selling as well as they once did. This is a systemic issue, not just a Mercedes problem. The S-Class, despite its historical prestige, is facing headwinds from both consumer preference and emerging competition.
Mercedes’ Response: A Facelift and Bold Claims
Mercedes has launched a mid-cycle facelift for the S-Class, which the company claims directly addresses customer feedback. Mathias Geisen, Mercedes’ sales chief, asserts that the updated model delivers “more status, comfort, safety, intelligence, and individuality.” This includes expanded customization options, such as 150 exterior colors and the ability to create bespoke shades.
However, sales of the company’s highest-end vehicles (including S-Class, EQS, AMG, Maybach, and G-Class) fell by five percent in 2025, even as the G-Class enjoyed record deliveries of nearly 50,000 units. Mercedes bundles S-Class sales with other premium models, making precise figures unavailable, but the overall trend indicates a weakening position.
The Future of Luxury: Competition and Innovation
The S-Class facelift arrives ahead of BMW’s own update for the 7 Series. Further pressure will come from a rumored Alpina-badged BMW model intended to compete directly with the Maybach S-Class. Mercedes retains an advantage in this arena with the S680’s V12 engine, which remains unavailable in rival vehicles.
The industry is undergoing a fundamental shift. Chinese automakers are no longer viewed as inferior; they represent a genuine threat to established luxury brands. This competition is forcing companies like Mercedes to innovate or risk losing market share.
Conclusion
Mercedes is determined to defend the S-Class’s position as the ultimate luxury sedan, but the market is changing rapidly. The current facelift may not be enough to reverse the decline, but the company is betting on brand loyalty and continued innovation to maintain its leadership. The next-generation S-Class, expected later this decade, will likely need to prioritize understated design, high-quality materials, and a less intrusive tech experience to recapture lost ground.
