Mercedes-Benz sees sharp drop in annual profit amid global challenges
Mercedes-Benz has reported its lowest annual profit since the Covid pandemic, citing US tariffs and fierce competition in China as key factors. The German carmaker’s net profit for 2025 was 5.3 billion euros, down almost 49 per cent from 2024. Ola Kaellenius, the chief executive, said the company is pushing forward with new model launches and a competitive product portfolio. The firm expects continued difficulties ahead, particularly in the Chinese market.
What we know
- Mercedes-Benz reported a net profit of 5.3 billion euros for 2025, almost 49 per cent lower than 2024.
- The company faced challenges from US tariffs, declining sales in China, and costs related to electric vehicle investments.
- Ola Kaellenius highlighted over 40 new model launches planned over the next three years.
- Mercedes-Benz expects 2026 revenue to be around last year’s level of 132.2 billion euros, with core profit “significantly above” the 2025 figure.
- Sales by volume in China fell 19 per cent last year, contributing to a 10 per cent drop in global sales.
