Mercedes-Benz Adjusts Sales Outlook for 2026 Due to Weakness in China
Mercedes-Benz Group has revised its sales outlook downward for the passenger car segment, projecting unit sales slightly below 2025 levels due to ongoing challenges in China. The company cited reduced demand and increased competition as key factors behind a 30% drop in Chinese passenger vehicle sales compared to last year's same quarter. Despite this decline, Mercedes-Benz noted strong performance elsewhere: Europe saw a 4% rise in car sales while the U.S. recorded a 10% increase. The company maintained its profitability targets and raised expectations for electrified vehicles as a share of total car sales from 21-23% to 23-25%. Battery electric vehicle (BEV) sales surged by 50.9%, with notable growth in Europe, where BEVs rose by 87%. Despite the weaker outlook, Mercedes-Benz reported strong quarterly earnings before interest and taxes of €1.54 billion and a net income increase to €1.08 billion. Mercedes-Benz management emphasized its commitment to accelerating new model launches and improving cost efficiency in response to market challenges.
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Topics: China market weakness earnings report electric vehicles (EVs) sales outlook