Mercedes Q2 Profit Up 22%, But China Slump Forces Sales Downgrade
Mercedes-Benz has reported a 22 per cent jump in second-quarter operating profit to 1.5 billion euros, aided by strong finance and vans earnings and a one-off gain from selling leasing arm Athlon. The German carmaker simultaneously cut its 2026 outlook, now expecting car sales and group revenue to fall on China weakness.
What was announced
Mercedes-Benz Group reported earnings before interest and tax of 1.5 billion euros (roughly 15,000 crore rupees) for the April to June quarter of 2026, a 22 per cent rise year on year but marginally below the 1.6 billion euro Visible Alpha analyst consensus. The result was propped up by the financial services and vans divisions, plus a 131 million euro gain from the planned sale of leasing subsidiary Athlon.
A weaker China means India moves up Mercedes' priority list for product allocation and pricing, not down.
The core Mercedes-Benz Cars business, however, is where the strain shows. Management has downgraded full-year 2026 guidance: unit sales and group revenue are now expected to come in slightly below 2025 levels, worse than the earlier forecast of flat performance. China, historically the group's single largest market, was called out as the primary drag, with the premium segment there contracting as local EV brands take share.
Reuters reported the announcement on 28 July 2026. The company did not break out India-specific figures in this update, but the Indian market sits outside the affected regions and has been running counter to the China trend: Mercedes-Benz India has posted record volumes in recent quarters, led by the locally assembled GLC, GLA, GLB and E-Class LWB, with the top-end Maybach and AMG range also selling in higher numbers than pre-pandemic.
The Car Jury verdict
The India story here is quietly the opposite of the global one. While Stuttgart wrestles with a shrinking China, Mercedes-Benz India has been on a tear with the GLC, GLA and GLB, all three of which The Car Jury rates as a BUY. A weaker China business means India moves up the priority list for product allocation, not down.
Rachit Hirani of MotorOctane has flagged the upcoming S-Class plug-in hybrid as one of the most interesting cars in the pipeline, and Gagan Choudhary continues to slot the GLA alongside the Q3 and X1 as the default entry-luxury pick. Indian buyers eyeing a GLC or GLB should not read the China headline as brand trouble. If anything, expect sharper festive pricing and quicker facelift arrivals as Mercedes leans harder on its healthier markets.
