Mercedes-Benz cuts 2026 profit outlook citing China market weakness

Mercedes-Benz lowered its full-year profit forecast for 2026 on Tuesday. Euronews, Daily Sabah, and Quartz reported that the decision comes as the German company faces challenging market conditions in China alongside rising material costs. Euronews noted that Mercedes-Benz is the third major German carmaker to reduce its outlook for the year. [1][2][3][4][5][6][8][9]

According to Euronews, the automaker now expects its 2026 core profit to remain flat at around €5.8 billion. The company had previously forecasted core profit growth of at least 15 percent. TradingView, Euronext Markets, and Quartz also reported that the cut was driven by weak sales in China and higher expenses. [1][3][4][6][8]

The company also lowered its expected profit margin for its core car business to between 2 percent and 3 percent, Euronews reported. Mercedes-Benz had earlier expected that figure to be between 3 percent and 5 percent. Euronews reported that these developments point to a severe structural crisis currently threatening the automotive industry in Germany. [1][3][4][8]

Following the announcement, Investing.com reported that shares of Mercedes-Benz fell by 5 percent. The drops in stock price and profit guidance reflect ongoing pressure from China market struggles, which Reuters noted continue to weigh on German automakers. [9][10]