Mercedes sees profits fall and prepares an offensive with 40 new models over three years

Major European manufacturers have been at the top of the automotive industry for many years. Their results have always been positive and have set the standard for success in the international market. But things have changed, and large companies such as Mercedes have found themselves trapped in a shifting market, and 2025 has brought significant surprises.

In the case of the German brand, net profits fell by 49%, something that has worried the multinational’s offices. In total, 5,331 million euros were earned, which is not bad but is far from the results of previous years. Before taxes, the drop was 57.2%. Sales reached 132,214 million euros, 9.2% less than the previous year.

The reasons that could explain these figures are the difficult moment we are living through because of the imposition of tariffs by the United States and the fierce competition from Chinese brands, which are carving out a very significant place in the European market. In addition, Mercedes’s market share in China has also fallen sharply. Chinese buyers, who have always welcomed German models very warmly, have turned to domestic brands, causing Mercedes’s sales to fall sharply.

Vehicle deliveries of the brand have fallen worldwide. Van registrations fell 11.5%, with 359,136 units. Passenger car registrations were 1,801,000, a decrease of 9.2% compared with the previous year. However, the company insists that the results are in line with the company’s forecasts.

To address this, Mercedes has announced that over the next three years 40 new models will be launched. The CLA, S-Class and GLC are currently driving sales. As for electric cars, sales of passenger cars fell a considerable 8.8%, with 168,823 cars sold.

Electric vans, on the other hand, increased sales by 46%, reaching a total of 28,488 units. The new Mercedes VAN.EA will soon begin production at the Vitoria plant. This factory will thus recover the production level it had two years ago, when it had to reduce its activity to adapt the facilities to manufacture this model and the new V-Class.

Although these negative figures may cause alarm among Mercedes’s shareholders, in reality all brands are facing problems of this kind, European, American and even Asian ones alike. The market is changing and all of them are suffering the consequences until they adapt to the new conditions that have emerged in recent years.