Mercedes-Benz cuts 2026 profit outlook amid China slump

Mercedes-Benz cut its 2026 adjusted return-on-sales forecast for its car business to 2%–3%, from 3%–5%, and now expects group operating profit to be roughly flat year over year rather than significantly higher. The automaker cited weakening demand and intensifying competition in China, alongside higher fourth-quarter costs, including materials. Deliveries in China fell sharply in the first nine months of the year, adding to pressure on sales and pricing. The downgrade follows similar outlook cuts by BMW and Volkswagen, and Mercedes shares fell after the announcement.