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Mercedes-Benz warns of further hit from weak China sales and tariffs

Sales dropped 9.2% in 2025, led by a 19% fall in China

Mercedes-Benz said it would be squeezed further by weak China sales and tariffs in 2026, after reporting a steep drop in profits last year.

The company said it expected an operating profit margin in its core autos business of between 3 and 5 per cent in 2026, while sales volumes would remain flat.

The lower forecast suggests 2026 will represent a transition for Mercedes and chief executive Ola Källenius, who has driven a focus on top-end models in the hopes of driving up the manufacturer’s profitability.

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