According to the company's financial results, Mercedes-Benz's profit plummeted by nearly half last year. The automotive giant is suffering primarily from tariffs and competition from China.
Mercedes-Benz's profit nearly halved last year. Compared to the previous year, the company's net income fell by approximately 49 percent, from €10.4 billion to €5.3 billion, the Stuttgart-based automaker announced.
Tariffs, negative exchange rate effects, and intense competition in China weighed on the results. Cost savings of more than €3.5 billion in the passenger car division, however, offset some of the headwinds.
Revenue declined by nine percent to €132.2 billion. Operating profit before interest and taxes fell by 57 percent to €5.82 billion.
The financial results were in line with forecasts and were driven by "a clear focus on efficiency, speed, and flexibility," Mercedes CEO Ola Källenius said in the statement. “We are ready for 2026,” said Källenius. With a clear plan and a highly competitive product portfolio, Mercedes is consistently driving its transformation forward.
Mercedes sells fewer cars
Last year, Mercedes sold a total of around 2,160,000 passenger cars and vans. Just over 1.8 million passenger cars were sold, representing a decline of nine percent compared to 2024. The decline was particularly pronounced in China, at 19 percent. China remains Mercedes' most important market. The Stuttgart-based company sold almost a third of all its passenger cars there in 2025.
The company had already reacted to the challenging situation a year ago and announced a cost-cutting program. The Group's net income had already fallen significantly year-on-year in 2024. Revenue and sales were also declining at that time.
The cost-cutting program is intended to help the company become more profitable again. According to the plan, production costs are to be reduced by ten percent by 2027 compared to then. In addition, material costs will be optimized. Fixed costs are also expected to decrease by a further ten percent by 2027. A severance package for employees in indirect areas, i.e., not in production, is also intended to help achieve this.
*dpa/lay (German Press Agency/WELT.DE 12.02.2026