Mercedes-Benz Q3 2026: Record EV Sales as China Drags Profits Down
Mercedes-Benz sold more electric cars than ever in the third quarter of 2026, but weaker business in China pushed overall car sales and profits down. The company published its results on 28 October and lowered its profit margin forecast for the car division.
Key takeaways
- Electric car (BEV) sales: up 61% year on year and 29% on the second quarter, a quarterly record.
- Car sales: 407,232 units, down 8%.
- Adjusted return on sales, cars: 2.5% (4.8% a year earlier).
- Forecast for 2026 car margin cut to 2-3%, with the fourth quarter expected around break-even.
The numbers
| Mercedes-Benz | Q3 2026 | Q3 2025 |
|---|---|---|
| Group revenue | €30.7 bn | €32.1 bn |
| Group EBIT (reported) | €1.77 bn | €0.75 bn |
| Net profit | €1.52 bn | €1.19 bn |
| Car sales | 407,232 | 441,453 |
| Cars: adjusted EBIT | €560 m | €1,139 m |
| Vans: sales | 84,421 | +1% |
Reported group profit rose mainly because the year-earlier quarter carried large one-off charges. On an adjusted basis, group EBIT for Q3 2026 fell 15% to €1.78 billion. Vans (adjusted return on sales 9.4%) and Financial Services (adjusted EBIT up 42% to €445 million in Q3 2026) held the result together.
Size at a glance
| Dimensions | Mercedes-Benz GLC X254 |
|---|---|
| Length | 4,716 mm185.7 in |
| Width | 1,890 mm74.4 in |
| Height | 1,640 mm64.6 in |
| Wheelbase | 2,888 mm113.7 in |
| Boot | 600 L21.2 cu ft |
Electric GLC and CLA drive the record
Battery-electric cars made up 16.8% of Mercedes car sales worldwide in the quarter. The main reason is the new generation of electric models: the electric GLC, which went on sale this year, more than tripled its sales compared with the second quarter, according to the earnings call, and the electric CLA is also in high demand. As we reported earlier, anyone ordering an electric CLA or GLC now waits about six months. Electric sales in Europe rose by almost 80%.
China is the problem
Chief executive Ola Källenius said on the analyst call that "the Chinese car market has contracted more than 20% this year". Mercedes sales in China fell by a similar amount, and China now accounts for about a fifth of the brand's car sales, down from more than a third a few years ago. Outside China, sales rose 1%, with Europe up 5% and the United States up 6%. Model changes for the GLE, GLS, S-Class and AMG ranges also held back sales of the most expensive cars.
CFO Harald Wilhelm described the situation with the words "the road ahead is bumpy". Mercedes plans to set out a new target picture for China at a capital markets update in early 2027.
What it means for buyers
For buyers in Europe the results change little in the short term: demand for the electric GLC and CLA means long delivery times rather than discounts. Buyers of outgoing GLE, GLS and S-Class stock may find more room to negotiate while the successors ramp up.
More on the models: Mercedes-Benz GLC, Mercedes-Benz CLA and the full Mercedes-Benz catalogue.
Sources
- Mercedes-Benz Group: Q3 2026 interim report key figures (28 Oct 2026) (accessed 29 Oct 2026)
- BigGo Finance: Mercedes-Benz Q3 2026 earnings call (28 Oct 2026) (accessed 29 Oct 2026)
- Investing.com: Mercedes-Benz cars Q3 adjusted profit halves as China slump bites (28 Oct 2026) (accessed 29 Oct 2026)
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