Mercedes-Benz Reports Declining Profitability as Lower Sales in China Weigh on the Second Quarter of 2026
By Jacqueline Chelliah28 juillet 2026
Mercedes-Benz’s revenue declined slightly by 3.3% to 32.1 billion euros in the second quarter of 2026, weighed down by a slowdown in the Chinese market and a still-challenging global economic environment. However, the German automaker was able to rely on strong growth in its electric vehicle sales.
The group posted an operating profit (EBIT) of 1.55 billion euros, compared with 1.3 billion euros a year earlier, on revenue of 32.1 billion euros.
The Mercedes-Benz Cars division posted an adjusted operating margin of 4%, in line with the group’s annual targets, despite a decline in profitability. The automaker faced increased competition in China, where its sales fell by 30%.
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Rise in Sales of 100% Electric Vehicles
The strategy to refresh the lineup appears to be working, as sales of 100% electric vehicles surged by 51% year-over-year, driven by an 87% increase in Europe, thanks in particular to the launch of the new CLA and GLB. Excluding China, global car sales rose by 2%, supported by growth in Europe and the United States.
The Mercedes-Benz Vans division posted an adjusted operating margin of 10.2%, close to its targets. Sales of electric vans rose by 46%, driven by strong demand in North America and Europe as well as the rollout of the new Van Architecture platform.
“On the Right Track”
“Despite a challenging market environment, we have remained on the right track while continuing our extensive program of new model launches,” said Board Chairman Ola Källenius, highlighting strong demand for new electric vehicles and ongoing efforts to improve productivity.
However, the group anticipates that global revenue and sales will be slightly lower than last year’s figures.
Key Points:
- Mercedes-Benz saw its revenue decline by 3.3% in the second quarter of 2026, hurt by a 30% drop in sales in China amid increased competition in this key market.
- All-electric vehicles continued their strong growth, with sales up 51%, driven by the success of the new CLA and GLB models, as well as sustained demand in Europe.
- The automaker is maintaining its strategy to refresh its product lineup, but anticipates global revenue and sales that are slightly lower than last year’s due to an economic environment that remains uncertain.
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