Mercedes-Benz Q3 net profit fell 31% to €1.19 billion, hit by 27% China sales decline and ongoing US tariff pressures on European car imports.
FRANKFURT: German luxury automaker Mercedes-Benz reported a sharp decline in third-quarter profits, hit by weak sales in China and ongoing US tariff pressures.
Net profit at the Stuttgart-based company fell 30.8% to €1.19 billion, though this exceeded analyst expectations of €1.09 billion in a FactSet poll.
“Our third-quarter results are in line with our full-year guidance,” said Mercedes-Benz CEO Ola Kaellenius.
The company lowered its annual outlook in July following former US President Donald Trump’s tariff measures, expecting 2025 revenue to be “significantly below” last year’s €146 billion.
Car exports from the European Union now face a 15% US tariff under a recent EU-US agreement, reduced from 27.5% but well above the pre-trade war rate of 2.5%.
Mercedes-Benz also contends with 25% US duties on imported car parts sourced from outside North America, despite operating a plant in Tuscaloosa, Alabama.
Sales volume in key market China dropped 27% in the third quarter, contributing to an overall 12% decline in global sales.
China’s automotive market has become intensely competitive for German manufacturers amid a brutal price war and strong local competition from companies like BYD.
Kaellenius told analysts that Mercedes is collaborating with Chinese self-driving software firm Momenta to enhance local market competitiveness but described the turnaround as “a multi-year task”.
“Looking ahead, we expect the market environment to remain challenging,” he said. “Hyper competition in China is not going away anytime soon.”
Mercedes-Benz shares rose 6% in Frankfurt trading despite the profit decline, while overall market trading remained flat. – AFP
