Mercedes-Benz Q2 Revenue Hits €32.06 bln, China Sales Slump 30%

Mercedes-Benz Group released its second-quarter 2026 earnings report.

The report showed that the Group achieved quarterly revenue of €32.061 billion, down 3% year-on-year due to market conditions in certain regions.

However, profitability stabilized and rebounded, with quarterly net profit reaching €1.086 billion, up 13% year-on-year; adjusted EBIT rose to €2.299 billion, up 16%; operating profit increased 22% year-on-year to €1.5 billion.

Yet beneath this seemingly solid earnings report, the Chinese market has become Mercedes-Benz’s toughest nut to crack – with quarterly sales in China plunging 30% year-on-year. This sharp decline directly prompted Mercedes-Benz to lower its full-year 2026 revenue outlook.

Let’s take a closer look.

On the sales front, Mercedes-Benz delivered 511,900 passenger cars and light commercial vehicles globally in the second quarter, down 6% year-on-year. Among these, passenger car sales reached 417,800 units, down 8% year-on-year.

Battery electric vehicles became the growth highlight of the quarter.

The Group’s BEV sales reached 63,000 units, up 50% year-on-year and 25% quarter-on-quarter. Among these, passenger car BEV sales were 52,900 units, up 51% year-on-year.

In the European market, BEV sales rose 87% year-on-year to 43,500 units, with the BEV share climbing to 26%, nearly doubling; in the German market, BEV sales doubled year-on-year, with the BEV share rising to 24%. The global BEV share increased from 7.7% a year ago to 13%.

Mercedes-Benz stated that demand for the all-new electric GLC, electric CLA, and electric GLB is “exceptionally strong”; the all-new S-Class has been successfully launched in Europe and will enter more markets in the coming months.

By segment, Top-End vehicle sales reached 58,100 units, down 10% year-on-year, mainly due to planned product transitions and model supply cadence; Core vehicle sales reached 249,300 units, down 9%; Entry vehicle sales reached 110,400 units, down 4%.

G-Class global sales rose 3% year-on-year, with Europe up 25% and Germany up 42%.

The Chinese market was the most worrying part of Mercedes-Benz’s second-quarter earnings.

In the second quarter, Mercedes-Benz sales in China were only 98,600 units, down 30% year-on-year. This decline not only far exceeded the Group’s global decline of 6%, but also marked a new quarterly low in China over the past decade.

Data shows that Mercedes-Benz’s cumulative sales in China in the first half reached 210,200 units, down 28% year-on-year. Looking at historical trends, Mercedes-Benz’s sales in China have declined year by year since peaking at approximately 765,000 units in 2023 – falling to about 684,000 units in 2024 and further to about 575,000 units in 2025, with the downward trend accelerating.

In a cross-comparison, the BBA trio suffered a collective setback in the Chinese market in the second quarter: BMW delivered 117,817 vehicles in China, down 30.2% year-on-year; Mercedes-Benz sold 98,600 vehicles, down 30%. Mercedes-Benz’s market share in China has now shrunk from 31% to 21%.

Mercedes-Benz attributed the decline in the Chinese market to multiple factors: intensified competition from local manufacturers, cautious consumer sentiment, ongoing model transitions, and proactive sales controls.

The continued deterioration of the Chinese market directly triggered Mercedes-Benz to lower its full-year earnings outlook.

Mercedes-Benz had previously expected Group revenue for 2026 to be flat year-on-year, with passenger car sales also flat. However, after the second-quarter report, the company lowered its full-year revenue outlook from “flat” to “slightly below prior-year levels”; the passenger car sales outlook was similarly revised from “flat” to “slightly below prior-year levels.”

Nevertheless, Mercedes-Benz maintained its full-year guidance for the passenger car division’s adjusted sales return of 3% to 5%. At the same time, the company raised its expected share of electrified vehicle sales from its previous target to 23% to 25%.