Mercedes-Benz Cuts Sales Forecast Despite 22% Profit Jump on China Weakness

German automaker Mercedes-Benz reported a 22% increase in second-quarter operating profit but lowered its full-year vehicle sales forecast, citing continued weakness in the Chinese market.

Mercedes-Benz lowered its full-year sales outlook despite reporting stronger second-quarter earnings, citing continued weakness in the Chinese market. [Photo: Mercedes-Benz Facebook]

Shares of the luxury carmaker rose more than 5% in Frankfurt trading at one point this week after the company released stronger-than-expected quarterly earnings, despite warning that soft demand in China would weigh on vehicle sales for the rest of the year, Doloresz Katanich reported for Euronews.

Mercedes-Benz said the "negative development of the Chinese market" prompted it to revise its outlook.

The company now expects Mercedes-Benz Cars unit sales to be slightly below last year's level, implying a decline of between 2% and 7.5%, based on the definitions in its 2025 annual report.

Reflecting the weaker sales outlook, Mercedes-Benz also expects group revenue to come in slightly below last year's level.

The company had previously projected broadly stable vehicle sales and revenue, Agence France-Presse (AFP) also reported.

Mercedes-Benz posted second-quarter operating profit of €1.55 billion, up 22% from €1.27 billion a year earlier, while revenue slipped 3% to €32.1 billion from €33.2 billion.

Chief Executive Officer Ola Källenius said the company remains on track despite challenging market conditions.

"Despite a demanding market environment, we remained on track in the second quarter while continuing to advance our product launch program.

Customer response to our new models is strong, with Mercedes-Benz Cars BEV sales up 51% and BEV order intake in Europe more than doubling during the quarter."