Mercedes-Benz Cuts Car Margin Outlook on China Weakness

The latest report

Reuters reported on 27 October that Mercedes-Benz reduced its expected adjusted return on sales for its core cars division to 2–3% for 2026, from 3–5%. The company cited an increasingly challenging market in China and higher costs in the fourth quarter.

Group operating profit is now expected to be broadly flat year on year, rather than significantly higher. Its shares were down 5.3% at 09:11 GMT in the report's market snapshot.

Market context

The update puts demand in China and cost pressures in focus for European automotive shares. The quoted share move is a historical snapshot, not a live price or a prediction.