Mercedes Experiences Significant Drop in Quarterly Profit Due to Weakness in China and US Tariffs

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Oct 29 2025

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Source: Yahoo Finance

Profit Decline: Mercedes Benz reported a 31% drop in third-quarter profit, falling to €1.19 billion due to weak sales in China and tariffs on US shipments, with revenue also down 7% to €32.15 billion.
CEO's Outlook: Despite the profit slump, CEO Ola Källenius maintained the company's full-year guidance, emphasizing ongoing product and tech launches and a focus on enhancing customer experience and efficiency.
Share Buyback Program: The company plans to continue with a €2 billion share buyback that was approved earlier this year, indicating confidence in its long-term strategy.
Market Challenges: Mercedes faces significant challenges from a 27% drop in sales in China amid economic difficulties and increased competition from local firms like BYD and Xiaomi, which are impacting profit margins.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.