Germany’s biggest carmakers have all lowered their annual outlooks amid competition in China, the world’s largest car market.
Key takeaways
Mercedes-Benz has lowered its 2026 profit outlook to match the previous year's €5.8 billion, citing significant market weakness in China. This adjustment follows similar downgrades by BMW and Volkswagen, driven by declining demand and competition from local manufacturers.
- 2026 core profit is now expected to remain flat at €5.8 billion, down from a previously guided 15% increase.
- Core car business profit margins are projected to fall to 2-3%, reduced from the earlier 3-5% estimate.
- Mercedes-Benz vehicle deliveries in China dropped 29% in the nine months ending September, hitting a new low.
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Mercedes-Benz now expects core profit to be on a par with last year’s €5.8 billion, down from its previous forecast of an increase of at least 15%. (EPA Images pic)FRANKFURT: German premium carmaker Mercedes-Benz on Tuesday cut its outlook for the year, citing tough conditions in China and higher material costs.
Core profit for 2026 is now expected to be on a par with the prior year's €5.8 billion, the company said, down from a previously guided increase of at least 15%.
Profit margins at the core car business are now seen at between 2 and 3 percent for the year, the firm said, down from the 3 to 5 percent previously expected.
The news makes Mercedes the last of the big three German carmakers to lower their annual outlook after BMW and Volkswagen, both also citing weakness in China, the world's largest car market.
