Mercedes lowers 2026 guidance as China sales slump 31%

· Automotive & EV · Germany · China

Mercedes-Benz lowered its EBIT guidance and margin expectations for 2026 as its China sales fell another 31 percent, with no sign of improvement. The automaker is reviewing its entire China operation, but past attempts to cater to local buyers have shown interest is far from guaranteed. The China decline continues to sap profit at the car division, adding to pressure on the group's financial outlook.

Why it matters:Mercedes' downgrade shows how deeply China's slowdown is hitting premium German automakers, and its overhaul will be watched as a test of whether local strategies can revive demand in the world's largest car market.

Key points

  • China sales fell 31%
  • 2026 EBIT guidance and margin expectations lowered
  • Company reviewing entire China operation

Sources (original reporting)

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