Mercedes-Benz cuts 2026 profit outlook on tough China market

Profit margins at the core car business are now seen at between two and three per cent for the year, the firm said, down from the three to five per cent previously expected. — AFP pic

First Published: Tuesday, 27 Oct 2026 6:02 PM MYT

FRANKFURT, Oct 27 — German premium carmaker Mercedes-Benz today 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  (RM26.4 billion), the company said, down from a previously guided increase of at least 15 per cent.

Profit margins at the core car business are now seen at between two and three per cent for the year, the firm said, down from the three to five per cent 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.

Mercedes-Benz’s vehicle deliveries in China — last year already at their lowest level since 2016 — fell a further 29 per cent in the nine months to end-September.

Local rivals such as Xiaomi and BYD have eaten into market share at the same time as a sluggish domestic economy has weighed on demand. — AFP