(AFP Photo)
Mercedes-Benz cut its 2026 profit outlook on Oct. 27, citing tougher conditions in China and higher costs expected in the final quarter, including for materials.
The German carmaker now expects annual earnings before interest and tax to remain around last year’s 5.8 billion euros, abandoning its forecast for a significant increase.
It also lowered the projected adjusted operating margin for its passenger car business to between 2 and 3 percent, from 3 to 5 percent.
Mercedes shares fell more than 4 percent after the announcement, while BMW and Volkswagen each lost about 2 percent.
The downgrade follows a 29 percent year-on-year fall in Mercedes’ car sales in China in the first nine months of 2026, according to company data.
Deliveries there had already dropped to their lowest level since 2016 last year.
BMW and Volkswagen have also lowered their annual forecasts as weak demand and competition from Chinese manufacturers, including BYD and Xiaomi, weigh on profits.
Mercedes reported preliminary third-quarter operating profit of 1.77 billion euros and an adjusted margin of 2.5 percent at its passenger car division. Full quarterly results were scheduled for Oct. 28.
The company left its annual forecasts for the vans and financial services divisions unchanged.
