The company now expects its core Mercedes-Benz Cars division to achieve an adjusted return on sales of between 2 and 3 per cent for the year, down from its previous forecast of 3 to 5 per cent.
Mercedes-Benz also revised its group operating profit guidance. Instead of expecting earnings to rise significantly above last year’s level, the company now anticipates operating profit to remain broadly in line with 2025. Its industrial free cash flow is also expected to fall significantly below the previous year’s level.
The revised outlook comes amid mounting pressure in China, the world’s largest automotive market, where domestic manufacturers are competing aggressively with established international brands, particularly in electric vehicles.
Mercedes-Benz’s core car sales fell 8 per cent year-on-year in the third quarter to 407,200 vehicles. Sales in China dropped 31 per cent to 86,800 cars over the same period.
Higher fourth-quarter expenses, including material costs, have added to the pressure on profitability.
Despite the challenges, Mercedes-Benz continues to pursue cost reductions and product updates as it seeks to strengthen its competitiveness. The latest revision underscores the difficulties facing traditional premium carmakers as market conditions and competition continue to shift.
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Mercedes-Benz has lowered its 2026 profit expectations, citing intensifying competition and a tougher market in China, alongside higher costs expected in the final quarter. The German automaker now expects its core car division’s adjusted sales margin to fall to 2–3%. German luxury carmaker Mercedes-Benz has lowered its 2026 profit outlook, pointing to worsening market conditions in China and...
Key takeaways
- Mercedes-Benz has lowered its 2026 profit expectations, citing intensifying competition and a tougher market in China, alongside higher costs expected in the final quarter.
- The German automaker now expects its core car division’s adjusted sales margin to fall to 2–3%.
- German luxury carmaker Mercedes-Benz has lowered its 2026 profit outlook, pointing to worsening market conditions in China and higher costs expected during the fourth quarter.The company now expects its core Mercedes-Benz Cars division to achieve an adjusted return on sales of between 2 and 3 per cent for the year, down from its previous forecast of 3 to 5 per cent.Mercedes-Benz also revised its group operating profit guidance.
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Mercedes-Benz has lowered its 2026 profit expectations, citing intensifying competition and a tougher market in China, alongside higher costs expected in the final quarter. The German automaker now expects its core car division’s adjusted sales margin to fall to 2–3%. German luxury carmaker Mercedes-Benz has lowered its 2026 profit outlook, pointing to worsening market conditions in China and...
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Glow 99.1 FM published this story with GlowRy Atuah listed as author.
When was it published?
October 27, 2026
