Berlin: German premium carmaker Mercedes-Benz reported a 22% rise in second-quarter operating profit but flagged weakness in its core cars business on Tuesday, now forecasting a drop in overall sales due to problems in China.Group earnings before interest and tax (EBIT) came in at €1.5 billion ($1.71 billion), slightly below an average analyst estimate of €1.6 billion, according to a poll conducted by Visible Alpha.Read more: Mercedes-Benz believes top-end buyers will keep fueling India's luxury car boomMercedes now expects both sales of cars and group revenue to come in slightly below the prior-year level in 2026, having previous forecast a stagnation.The group result in the April-to-June period was supported by strong earnings at Mercedes' financial services and vans units. It also benefited from a €131 million gain linked to the planned sale of its leasing subsidiary Athlon."Despite a demanding market environment, we remained on track in the second quarter while continuing to advance our product launch programme," CEO Ola Kaellenius said, vowing further cost-cutting measures in the second half of the year.($1 = 0.8795 euros)Read more: Mercedes-Benz India rolls out E25-compliant cars amid biofuel push
Mercedes Benz reports Q2 profit boost but flags China woes for car sales
Mercedes-Benz saw a profit increase but faces challenges ahead. The automaker now expects overall sales to decline in 2026. This forecast is due to ongoing problems within the Chinese market. Strong performance from financial services and vans supported recent earnings. The company plans further cost-cutting measures in the coming months.
TL;DRAI
Mercedes posted 22% Q2 EBIT gain (€1.5B) but lowered 2026 guidance—now forecasts declining sales and revenue due to China stress. Premium auto downturn signals capex cuts and delayed IT investments across OEM supply networks.
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