Margin Ambition
Mercedes-Benz Cars seeks to sell approximately 2 million vehicles, including a more than 15% increase in Top-End Vehicle sales and a doubling of the xEV share in the medium term. Mercedes-Benz expects to achieve an 8–10% adjusted Return on Sales (RoS) for Mercedes-Benz Cars in the medium term through a combination of strong product momentum from the launch programme and relentless cost discipline .
The full benefits of Next Level Performance, which include fixed and variable cost reductions and lower investments, will support cash conversion and generation.
Production is being made leaner and more efficient, with global production capacity being adjusted to around 2.2 million units by 2028. Assembly of Mercedes-Benz vehicles at the COMPAS Joint Venture plant in Aguascalientes will end in 2026. Production capacity in Germany will be at 900,000 units, while Kecskemét in Hungary will be able to produce up to 400,000 vehicles.
In addition, production efficiency is set to be improved through lower energy costs, higher equipment utilisation, higher automation, the use of Artificial Intelligence, and the reduction of logistics costs by optimised transport routes and outsourcing. With these measures, Mercedes-Benz aims to reduce production costs per unit by a total of 10% from 2027 onwards compared to 2024 levels.
Mercedes-Benz has implemented significant fixed-cost reductions in 2025. Additionally, Mercedes-Benz launched a personnel cost reduction programme in 2025, which will further increase efficiency levels in 2026 and 2027 to support a fixed cost reduction by 10% between 2024 and 2027.
Efficiency measures further include a reduction of management positions, outsourcing of non-core activities, the initiated sale of company-owned retail in Germany and the consolidation of customer-oriented activities from the Sales & Customer unit and Financial Services into an integrated organisation.
Material cost savings are expected to reach approximately 8% until 2027, rising to 10% beyond this date, thanks to a strengthening of our local-for-local approach, leveraging sourcing from best-cost countries, as well as through radical cost engineering and close cooperation between R&D, purchasing and supplier teams and further standardisation of components and modules.
Capex and R&D investments peaked in 2025 and will start to decline in 2026. Investments allocated to Top-End Vehicles and Core segment vehicles will amount to 70%–80% of platform investments. A technology stack, including MB.OS and MB.DRIVE (ADAS) will be scaled across the entire product portfolio, including ICE and BEV architectures in every segment.