Mercedes-Benz Group disclosed on Thursday that its revenue fell 9% year over year in 2025, mainly due to slowing demand in China and the United States.
Last year, the German automaker achieved a yearly global revenue of €132.2 billion (equivalent to $157.1 billion), below FactSet consensus estimates of €133.4 billion ($158.5 billion).
Analysts polled by FactSet had previously estimated an annual EBIT of €6.3 billion; however, the figures came at €5.8 billion, representing a 57.2% plunge from a year ago.
Net profit nearly halved year over year to €5.3 billion.
Looking into 2026, Mercedes expects car sales to stay roughly at the same level as in 2025.
However, it warned that the adjusted profit margin for its car division might decline to 3%–5%, down from 5% in 2025.
According to the automaker, the margin could’ve reached 6.1% in 2025 had it not been for the impact of US tariffs.
Despite the headwinds, the company’s Chief Executive Officer Ola Källenius dismissed demand concerns.
“We are all set for 2026,” Källenius stated, as “the launch of more than 40 new models over only three years continues at an even higher pace.”
The brand has recently launched the GLC SUV and CLA shooting-brake and is set to release a “major update” of its S-Class, GLE and GLS models this year.
“Strong demand for our new CLA, GLC or S-Class proves that our customers are excited about our new models,” the CEO added, highlighting Mercedes has a “clear game plan” and “very competitive product portfolio.”
According to a statement released this Thursday, its vehicles currently have “order books filled well into the second half of 2026, with production running on three shifts to meet high demand.”
Revenue Breakdown
The Mercedes-Benz Cars division posted a €96.4 billion ($114.5 billion) yearly revenue, down 10.5% from €107.8 billion ($128.0 billion) achieved in 2024.
The company saw its biggest revenue drop in China, where it fell 33.6% to €16.5 billion ($19.6 billion) from €23.1 billion ($27.5 billion).
According to The Wall Street Journal, the group aims to resolve this by implementing a “series of initiatives, such as using more local suppliers and optimizing production” in the next few years.
In China, the Stuttgart-based company listed 551,932 new passenger vehicles — a 19.3% fall from 2024’s 683,568 result.
Specifically looking at locally-produced units, the Mercedes-Benz saw its sales slump year over year by 19.5% to 453,198 registrations.
Mercedes‘ revenue in the United States also declined by 11.2% year over year in 2025, to €30.974 billion ($36.802 billion) from €34.900 billion ($41.474 billion).
The company blamed US tariffs on imported vehicles and auto parts, and a further weakened demand for the company’s fully electric lineup since the deadline of the federal EV tax credit on September 30.
The group has committed to “localize more production from Europe to limit damage” from the duties imposed on imported EVs.
In the US, the brand’s passenger car sales declined 12.3% to 284,650 units, compared to the 324,529 vehicles sold in 2024.
2025 Global Sales
Last year, the German Group sold a total of 2.16 million vehicles, including both cars and vans.
Its Cars division delivered 1,801,291 units worldwide, representing a 9.2% year-on-year decline.
Of those, 368,700 were electrified vehicles, which include both battery electric (BEV) and plug-in hybrids (PHEV).
Fully electric vehicles accounted for 168,823 registrations, falling 8.8% compared to 2024, when the brand delivered 185,059 units.
Last year’s PHEV sales reached 199,877 vehicles, a 9.5% rise from the 182,551 registered a year before.
