German automaker Mercedes-Benz announced on Thursday a net profit of 5,1 billion euros for 2025, down by almost half year-on-year and at its lowest level since 2020. Revenue fell by 9,2% to 132,2 billion euros, amid slowing sales and increased pressures in the global market.
The operating margin of the passenger car division collapsed to 3,7%, compared to 8,1% in 2024 and 12,6% in 2023. The group, which initially targeted a margin between 4 and 6%, cites in particular the impact of US tariffs, estimated at around one billion euros.
A marked decline in China and a product offensive announced
Car deliveries fell by 9% year-on-year, with a 19% drop in China, where competition from local brands, particularly in the electric vehicle segment, is intensifying. Sales of electric vehicles also declined.
For 2026, Mercedes-Benz forecasts a margin of between 3 and 5%. To revive its business, the group has announced the launch of 40 new models over three years, including several electric SUVs and sedans.
