Mercedes-Benz Group today released its first-quarter 2026 financial results. In its earnings report, the company stated that in the face of multiple challenges including weak demand in the Chinese market, intensified competition from local brands, and geopolitical uncertainties, several core performance indicators saw noticeable year-on-year declines, though the final results still beat market expectations. Mercedes-Benz Q1 2026 earnings report. According to the data, the company’s revenue for the first quarter was €31.602 billion, down 4.9% year-on-year; EBIT came in at €1.9 billion, a sharp decline of 17%; net profit fell to €1.433 billion, a 17.2% decrease year-on-year. Mercedes-Benz’s core automotive business posted an adjusted return on sales of 4.1%, significantly down from 7.3% in the same period last year, but still within the company’s full-year guidance range of 3% to 5%. The Mercedes-Benz Group delivered a total of 499,700 new vehicles globally in the first quarter, a 6% decline year-on-year. Among them, BEV sales reached 44,200 units, up 9% year-on-year. Mercedes-Benz 140th anniversary press conference. From a product mix perspective, high-end models continued to serve as the profit anchor for Mercedes-Benz. According to the earnings report, sales of the Maybach series and the G-Class both achieved double-digit growth — Maybach up 22% year-on-year and G-Class up 16% — providing strong support to overall profitability. In contrast, sales of entry-level and core models saw notable declines. By category, high-end models (including AMG, Maybach, etc.) sold 61,500 units, down 5% year-on-year; core models sold 248,000 units, down 6%; and entry-level models sold 109,800 units, a 7% decrease. Mercedes-Benz GLC SUV Looking at regional markets, Europe continued the positive momentum from the previous quarter, delivering 158,400 new vehicles, up 7% year-on-year. The German home market performed particularly well, with sales up 9% and BEV sales surging 34%. North America delivered 89,500 vehicles, a 16% increase, with the U.S. market standing out the most — sales of 81,100 units, up 20% year-on-year. In contrast, the performance of the Chinese market was the biggest drag on overall results. According to the data, Mercedes-Benz sold only 111,600 vehicles in China in the first quarter of 2026, a sharp 27% drop year-on-year, marking the lowest level in nearly five years. Despite the significant sales decline in China, as of the end of the first quarter, China accounted for 26.6% of Mercedes-Benz’s global core automotive sales, down from the previous one-third high. Mercedes-Benz GLC SUV Regarding the sudden drop in China sales, the official explanation from Mercedes-Benz is that 2026 is a “transition year” for the company in the Chinese market, with the decline partly resulting from the company’s orderly product structural adjustments. According to the plan, the group will launch over 40 new models in 2027, covering multiple powertrain forms, including seven world premieres developed specifically for the Chinese market. At the end of the earnings report, the group reiterated its mid-to-long-term strategic goals for passenger cars: a medium-term sales target of approximately 2 million units; a 15% growth target in the high-end luxury segment; and a gradual increase in the share of electrified models (including plug-in hybrids) to around 40%.