Mercedes-Benz flags more margin pressure amid a tough road ahead in China

Mercedes-Benz warns profit margins will fall this year amid high costs and a weak Chinese market. The firm is now launching 40 new models to win back customers.

Insights:
Mercedes-Benz Group AG reported full-year 2025 results that fell short of analyst expectations on Thursday, February 12, 2026. The company warned that profit margins at its cars division could see further declines this year, attributing the pressure to high operational costs, a sluggish market in China CNCN, and the impact of global tariffs. This announcement led to a multi-percent decline in the company's share price as investors reacted to reduced near-term profitability and a cautious outlook for the coming months.
Mercedes-Benz S-Class (S-Klasse) is presented during its world premiere in Stuttgart, Germany, January 29, 2026. REUTERS/Angelika Warmuth
Mercedes-Benz S-Class (S-Klasse) is presented during its world premiere in Stuttgart, Germany, January 29, 2026. REUTERS/Angelika Warmuth
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