Gotrade News - Two consumer-facing sectors took simultaneous hits from Chinese market headwinds on Tuesday (Apr 29). Baidu shares slid in Hong Kong after Beijing paused new robotaxi permits.
At the same time, Mercedes-Benz reported a 17% Q1 profit drop driven by collapsing China volumes. The combination reinforces China as the dominant risk factor for global consumer-facing names this earnings season.
Key Takeaways
- Baidu shares fell 4% in Hong Kong, Pony.ai dropped 7%, and WeRide declined 3%.
- Beijing froze new robotaxi fleet permits after a late-March Apollo Go incident in Wuhan involving over 100 vehicles.
- Mercedes-Benz Q1 China sales fell 27% to 111,621 units, with net profit down 17.2% to €1.43 billion.
Beijing Halts New Robotaxi Permits
Baidu shares dropped roughly 4% in Hong Kong following the regulatory move. Pony.ai fell 7% and WeRide lost 3% in Tuesday (Apr 29) trading.
Chinese authorities halted approval of new autonomous driving permits, according to Bloomberg. The freeze prevents companies from expanding fleets, launching new pilot programs, or entering additional cities.
The suspension follows a late-March Wuhan incident involving more than 100 Baidu Apollo Go robotaxis. The vehicles suddenly stopped due to a system fault, stranding passengers and disrupting traffic, per Investing.com.
Regulators instructed local governments to conduct comprehensive self-reviews and tighten safety monitoring protocols. The duration of the permit freeze remains unspecified, adding uncertainty to China's autonomous mobility sector.
Mercedes Profit Slides on China Slump
Mercedes-Benz reported Q1 2026 net profit of €1.43 billion, down 17.2% from €1.73 billion a year earlier. Quarterly revenue fell 5% to €31.60 billion, according to company filings.
Sales in China, Mercedes' single largest market, plunged 27% to 111,621 units in Q1. The decline was driven by aggressive pricing competition from domestic premium brands.
Mercedes called 2026 a transition year for China, partly due to the phase-out of entry-segment models ahead of new launches. The company is co-developing a new generation of China-fit vehicles with local partners.
Global Q1 sales in the core car business fell 6% to 419,400 vehicles. Europe rose 7% and the US grew 20%, but the gains failed to offset the sharp China decline.
Mercedes is betting on new EV launches including the CLA Shooting Brake, GLB, GLC, and electric C-Class to lift demand. A China-specific electric GLC compact SUV variant was unveiled at the Auto China show in Beijing this week.
