Mercedes-Benz cuts profit outlook as China conditions weigh
The carmaker now forecasts roughly flat annual core profit of around €5.8 billion, rather than growth of at least 15 per cent.
Mercedes-Benz lowered its 2026 earnings expectations on 27 October, blaming difficult trading conditions in China and increased material costs. The German manufacturer said annual core profit would be broadly flat at around €5.8 billion, abandoning a growth target of at least 15 per cent.
For its core car operations, Mercedes-Benz now projects a profit margin between 2 and 3 per cent. It had previously guided for between 3 and 5 per cent.
Preliminary third-quarter figures put core profit at €1.77 billion and the car division’s margin at 2.5 per cent. The company is due to publish its complete quarterly results on 28 October.
The announcement was followed by a fall of more than 4 per cent in Mercedes-Benz shares. Shares in BMW and Volkswagen each dropped about 2 per cent.
Mercedes-Benz deliveries in China declined a further 29 per cent during January–September 2026. Its deliveries there in 2025 were the lowest since 2016.
BMW and Volkswagen had also trimmed their annual outlooks, with weak demand and competition from Chinese manufacturers including BYD and Xiaomi weighing on their profits.
