Mercedes-Benz lowers its 2026 unit sales outlook below 2025 levels due to China weakness while maintaining profitability targets.
Mercedes-Benz Group reduced its 2026 sales outlook for its passenger car division and the wider group, citing persistent pressures in China. The company now expects unit sales to fall slightly below 2025 levels, revising its previous guidance of matching last year’s performance. Profitability targets remain unchanged, including a 3-5% adjusted return on sales for the cars division and existing industrial free cash flow projections.
Quarterly group revenue declined 3.3% year on year to €32.06bn ($36.48bn), while EBIT rose 21.5% to €1.54bn and net income increased 13.5% to €1.08bn. Mercedes-Benz Cars sold 417,765 vehicles, down 7.9% from a year earlier, with EBIT falling to €909m from €1.22bn. China sales dropped 30% year on year, contrasting with a 4% rise in Europe and a 10% increase in the US.
The company raised its electrified vehicle sales forecast to 23-25% of total sales, up from 21-23%. Battery electric vehicle sales surged 50.9% to 52,852 units, driven by an 87% increase in Europe. Mercedes-Benz Vans reported adjusted EBIT of €454m.