The decline in sales in China was particularly noticeable.
The profit of the German company Mercedes-Benz in 2025 fell almost by half compared to the previous period - from €10.4 billion to €5.3 billion, the company reported on Thursday, February 12.
The annual profit was the lowest for the company in the last six years. The last time Mercedes reported a lower profit was in 2019 - €1.64 billion. Revenue for the past year also decreased - by nine percent, to €145.59 billion. Analysts note that the decline in financial performance was due to reduced demand in Europe and China, as well as U.S. tariffs.
Last year, Mercedes sold a total of about 2.1 million vehicles of various types. The number of passenger cars sold was 1.8 million units, which is a 9 percent decrease compared to 2024. The decline in sales in China was particularly noticeable - by 19 percent. China remains the most important market for Mercedes. The Stuttgart company sold nearly a third of all its passenger cars there in 2025.
Growth Expected in 2026
The financial results were in line with forecasts and were attributed to a "clear focus on efficiency, speed, and flexibility," commented Mercedes CEO Ola Källenius on the financial results.
The company expects that in 2026, consolidated revenue will remain at the same level, while operating profit will be significantly higher. As noted by the dpa agency, Mercedes responded to the challenging situation a year ago and announced a cost-cutting program. According to the plan, production and fixed costs are to be reduced by ten percent by 2027.
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