German luxury carmaker Mercedes-Benz Group reported a 49% drop in net profit to 5.3 billion euros ($5.8 billion) for 2025, with operating profit plunging 57% to 5.82 billion euros ($6.3 billion). Revenue fell 9.2% to 132.2 billion euros ($144.1 billion), hit by tariffs, unfavorable currency effects, and fierce competition in China where sales slumped 19.3%. The core cars division saw adjusted operating profit drop 45% to 4.8 billion euros ($5.2 billion) with margins falling to 5.0%. Mercedes plans to launch over 40 new models by 2027 including electric versions, while targeting a return to 2 million annual sales.

Related reading: Mercedes CEO’s last shot at luxury crown hinges on revamped S-Class