Mercedes is placing greater emphasis on taxis again, with new competition from BYD

Image: Mercedes-Benz (illustrative)

According to the Handelsblatt, Mercedes-Benz plans to restore greater importance to the German taxi business. Following a withdrawal from this sector due to low margins, there are signs of a shift in trend. The automaker is considering selling more vehicles to this industry in the coming years.

In the first half of the year, Mercedes models accounted for 18 percent of new taxi registrations in Germany. This represents an increase from 8 percent in the first half of 2025, although a share of 45 percent was reached in 2022. The growth is driven primarily by the E-Class, with 126 vehicles of this model registered as taxis in the first half of the year.

Meanwhile, Chinese electric vehicle manufacturer BYD is pursuing a growth strategy in Germany’s taxi market. Carsten Schopf, head of business customer sales in Germany, described taxis to Handelsblatt as a crucial part of this strategy. While only ten new taxi registrations by BYD were recorded in the first half of the year, the target is 500 by the end of the year. A four-digit figure is aimed for next year, which would make the Chinese company one of the largest taxi suppliers in the country.

To boost demand again, Mercedes has been offering a 24 percent discount on two diesel models of the E-Class since January, reducing their price below 40,000 euros. Discounts are also available for vans such as the Vito and the V-Class, according to Handelsblatt. The manufacturer also plans to offer the new all-electric VLE as a taxi. However, Mercedes does not intend to reintroduce the beige factory paint color, nor the necessary taxi equipment. Instead, specialized companies like Intax modify standard models afterward.

The competition in the taxi segment is intensifying due to aggressive pricing strategies. According to the report, BYD is offering its plug-in hybrid mid-size SUV, the Seal 6, at a 37 percent discount for less than 30,000 euros. The Chinese company, which focuses on pure electric and plug-in hybrid vehicles, plans to expand its lineup in the future with the all-electric models Atto 3 and Sealion 7.

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About the author

Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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