Mercedes-Benz reported a 13.5% increase in second-quarter profit to roughly €1.09 billion, even as revenue and vehicle sales declined amid intensifying competition in China. The automaker's operating profit rose 21.5% to €1.55 billion for the quarter, while revenue fell 3.3% to just over €32 billion.
The car division struggled significantly, with operating earnings plunging 94% to €49 million from €783 million a year earlier. Passenger car sales in China dropped 30% as domestic manufacturers gained ground. Mercedes lowered its 2026 forecast, expecting car deliveries to fall slightly below last year's level. Volkswagen similarly trimmed its outlook in July due to Chinese competitive pressure.
Mercedes sold approximately 512,000 cars and vans in the quarter, down 6% year-over-year. The company tightened cost controls in late June, deferring a contractual bonus payment to 2027.