Mercedes-Benz Q1 2025 Profit Plummets 40% as China Sales Drop 19%

Mercedes-Benz Group recently released its 2025 financial results, reporting an adjusted EBIT of €8.2 billion—a sharp 40% year-over-year decline—and revenue of €132.2 billion, down 9%. The passenger car segment saw its EBIT drop from €8.7 billion to €4.8 billion. The company stated that efficiency improvements partially offset pressures from lower sales volumes, declining net pricing, and foreign exchange fluctuations. Hit by a 19% year-over-year decline in sales in China, Mercedes-Benz plans to adjust its global production capacity to approximately 2.2 million vehicles by 2028 and will close its COMPAS plant in Mexico in 2026. Production capacity in Germany and Hungary will reach 900,000 and 400,000 units, respectively. Additionally, the company will implement personnel cost reductions between 2026 and 2027, aiming to cut fixed costs by 10% over the 2024–2027 period. On the product front, Mercedes-Benz will launch more than 40 new models within three years. In 2026 alone, it plans to introduce over 15 new or updated models and seven China-exclusive models in the Chinese market. The company targets mid-term growth of more than 15% in premium vehicle sales, a doubling of its new energy vehicle market share, and a return on sales of 8%–10%.