Mercedes-Benz Lowers 2026 Profit Forecast Amid China Struggles

On October 27, 2026, Mercedes-Benz announced a reduction in its profit outlook for the year, attributing the change to difficult market conditions in China and rising material costs. The company now anticipates core profit for 2026 to be on par with the previous year's figure of 5.8 billion euros, which is a decrease from an earlier forecast that predicted at least a 15 percent increase.

Additionally, profit margins for the core car business are now expected to range between two and three percent, down from the previously expected three to five percent. This adjustment makes Mercedes-Benz the last of the major German car manufacturers to lower their annual outlook, following similar announcements from BMW and Volkswagen, both of which cited weaknesses in the Chinese market.

Vehicle deliveries for Mercedes-Benz in China have already declined significantly, falling 29 percent in the nine months leading to the end of September, with local competitors like Xiaomi and BYD impacting market share amid a sluggish domestic economy.