Mercedes-Benz cuts 2026 profit outlook on tough China market
Summary
Mercedes-Benz has cut its 2026 profit outlook, citing tough conditions in China and higher material costs. Vehicle deliveries in China fell 29% in the first nine months as local rivals like Xiaomi and BYD gained market share.
Key Points
- Mercedes-Benz lowered its 2026 profit outlook to roughly match the prior year's 5.8 billion euros, down from a previous forecast of at least 15% growth.
- The company now expects core car-business profit margins of just 2% to 3%, compared with an earlier estimate of 3% to 5%.
- Mercedes is the last of Germany's big three carmakers to trim its annual outlook after BMW and Volkswagen also flagged weakness in China.
- Deliveries in China fell 29% in the nine months to end-September as Xiaomi and BYD gained ground in a sluggish market.
