Mercedes Reverses Course on Taxis as BYD Pushes Harder

Mercedes-Benz, which once dominated Germany's taxi market before stepping away due to slim profits, is now trying to win back that business as it faces growing pressure from BYD.

In the first half of 2025. Mercedes made up only eight percent of new taxi registrations in Germany, a sharp drop from 45 percent in 2022. But after refocusing on cabs, its share climbed to 18 percent in the same period of 2026.

The shift is partly driven by discounts. Mercedes is offering a 24 percent price cut on two popular E-Class diesel models, bringing them under €40,000, with the offer extended through year-end. The Vito comes with an 18 percent discount and a €6,000 rebate, while the V-Class gets a smaller discount plus a €5,000 payment.

The V-Class is being phased out for the electric VLE, which Mercedes also wants in taxi fleets, but there's a catch: in its roomiest configuration, the VLE exceeds 3.5 tons, meaning it can't be driven with a standard Class B license.

Analyst Frank Schwope called Mercedes' earlier exit from taxis a "fatal mistake" by CEO Ola Källenius, noting that a taxi fleet sends a strong signal and every fare acts as a test drive for potential buyers.

Meanwhile, BYD is moving in. Local manager Carsten Schopf says taxis are a key part of growth strategy, targeting around 500 sales this year, though only 10 BYD taxis were registered in Germany in the first half, with orders reportedly past 100 units. The goal for 2027 is four-figure sales.

The BYD Seal 6 wagon is offered to operators for under €30,000, a 37 percent discount off list price. BYD also plans to offer the electric Atto 3 and Sealion 7 to taxi buyers, helped by cities like Hamburg that now allow only zero-emission taxis.

BYD has also hired taxi specialists from rivals and increased trade press advertising. Still, the established players hold ground: Volkswagen. Toyota, and Mercedes together account for 90 percent of new taxi registrations, with VW alone over half the market.