Mercedes-Benz Reclaims German Taxi Market as BYD Enters the Fray

Mercedes-Benz is making a forceful return to the German taxi market, reversing a strategy that saw it effectively exit the segment over low profitability. Market researcher Dataforce reports that Mercedes models accounted for 18% of new taxi registrations in the first half of 2026, up sharply from just 8% in the same period of 2025 — though still well below the 45% peak recorded in 2022.

The revival is being driven primarily by the E-Class sedan. Whereas only 72 new E-Class taxis were registered across all of 2025, that figure more than doubled to 126 in the first half of 2026 alone. Since January, Mercedes has offered taxi operators a 24% discount on two E-Class diesel variants, bringing the price below €40,000 (approx. $43,200). The promotion, originally set to expire in July, has now been extended through the end of the year.

Mercedes is also incentivizing its van lineup: the Vito receives an 18% discount plus a €6,000 (approx. $6,480) subsidy, while the V-Class gets a 3% discount and a €5,000 (approx. $5,400) subsidy. The automaker plans to add the all-electric VLE, the V-Class's successor, to its taxi fleet offerings — though the Handelsblatt reports that the VLE in a spacious configuration could exceed 3.5 tons, falling outside the scope of a standard Class B driver's license in Germany.

Automotive analyst Frank Schwope criticized the earlier retreat: "Exiting the taxi market was a fatal mistake by Källner." He noted that taxi fleets carry strong signaling value, with every ride serving as a real-world test drive for prospective buyers.

BYD Moves Into the Same Arena

Mercedes is not the only automaker circling the German taxi market. BYD is actively pursuing the segment, with Carsten Schopf, head of customer sales for BYD Germany, calling taxis a "key pillar" of the company's growth strategy in the country.

BYD registered just 10 new taxis in Germany during H1 2026, but Schopf expects roughly 500 units for the full year, with orders already exceeding 100. The company's 2027 target is four-figure sales. To win over operators, BYD is offering the Seal 6 Touring at below €30,000 (approx. $32,400) — a 37% cut from the standard list price. The Seal 6 is available as a plug-in hybrid, while BYD also plans to supply battery-electric Atto 3 and Sealion 7 models to the taxi sector.

Incumbents Still Dominate

Despite the renewed activity, the German taxi market remains firmly controlled by three brands. Volkswagen, Toyota, and Mercedes together hold 90% of new taxi registrations, with Volkswagen alone capturing more than half. The now-discontinued Touran has long been Germany's best-selling taxi model by registration volume.