Mercedes-Benz Lowers 2026 Profit Forecast Amid China Market Challenges

German luxury carmaker Mercedes-Benz has revised its 2026 financial forecast downward, blaming difficult market conditions in China and rising material costs.

The company said on Tuesday that its core profit for the year is now expected to remain at 5.8 billion euros ($6.5 billion), matching the previous year’s figure, instead of the minimum 15 per cent growth projected earlier.

Mercedes-Benz also lowered its expected profit margin for its car division to between two and three per cent, compared with its earlier forecast of three to five per cent.

The revision makes Mercedes the latest of Germany’s three major carmakers to cut its annual outlook, following BMW and Volkswagen, which have also reported challenges in China, the world’s largest automobile market.

Vehicle deliveries by Mercedes-Benz in China dropped by 29 per cent in the first nine months of the year, through September.

The decline follows an already weak performance last year, when deliveries reached their lowest level since 2016.

The company is facing growing competition from Chinese automakers, including Xiaomi and BYD, which have continued to gain market share. Meanwhile, a sluggish Chinese economy has further dampened consumer demand for vehicles.

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