Business · Companies · 1 hr ago
Mercedes-Benz cuts 2026 profit outlook as China sales fall
Mercedes-Benz cut its profit outlook for 2026 as business conditions worsened.
The German carmaker said it expects higher costs in the final quarter, including for materials, alongside a difficult market in China.
Its adjusted car profit margin is now forecast at 2% to 3%, down from the previous range of 3% to 5%.
In the third quarter, Mercedes sales in China fell 31% to about 86,000 cars, amid weak demand and strong competition.
The company’s shares fell about 4% after the announcement, while sales rose in Europe and the United States during the first nine months of the year.
The China slump puts pressure on CEO Ola Källenius’s turnaround plan, which aims to reduce costs and restore growth.
Mercedes plans to develop and build more vehicles in China and start offering severance packages in December as part of a drive to cut thousands of jobs.
Mercedes-Benz cut its 2026 profit outlook, citing difficult conditions in China and higher fourth-quarter costs.
The company now expects operating profit at the level of 2025, rather than the increase of at least 15 percent it had previously forecast.
It lowered its forecast for the adjusted profit margin in its car business to 2 to 3 percent from 3 to 5 percent.
Mercedes deliveries in China fell sharply, with reports putting the decline at 29 percent over the first nine months or 31 percent in the third quarter.
The company’s shares fell after the announcement.
- Who
- Mercedes-Benz.
- What
- It cut its 2026 profit outlook and lowered its forecast for its car-business profit margin.
- When
- Tuesday, October 27, 2026.
- Where
- Stuttgart, Germany; the outlook change was driven in part by conditions in China.
- Why
- Mercedes cited a more challenging market in China and higher fourth-quarter costs, including material costs.
This story does not have two clearly opposing sides.
Mercedes deliveries in China fell 29 percent year on year, according to Asharq Al-Awsat.
Mercedes deliveries in China fell 31 percent to about 86,000 vehicles, according to NZZ.
Mercedes-Benz cut its 2026 profit outlook, citing conditions in China and higher fourth-quarter costs.
Mercedes-Benz was due to publish its full third-quarter results.
- 2026 operating profit outlook
- At the level of 2025
- 2025 operating profit
- 5.8 billion euros
- Adjusted car-business margin forecast
- 2 to 3 percent, down from 3 to 5 percent
- China deliveries, first nine months
- Down 29 percent year on year, according to Asharq Al-Awsat
- China deliveries, third quarter
- About 86,000 vehicles, down 31 percent, according to NZZ
5 sources
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What people are saying
increasingly challenging market environment in China
higher costs in the fourth quarter, including higher material costs
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