Mercedes-Benz posted a 13.5% increase in net profit for the second quarter of 2026, rising from €957 million to €1.09 billion.
However, the core car business suffered a massive blow in China.
>>> BBC Documentary Alleges Sexual Misconduct by Jared Leto Involving Teenagers
The company's Cars division reported an adjusted EBIT of €909 million, but the reported figure plunged roughly 94% year-on-year to just €49 million.
The collapse was driven by impairments of €704 million linked to Chinese equity-method investments.
China sales fell 30% in the quarter, with Mercedes-Benz Cars selling 417,765 vehicles globally, down from 453,674 a year earlier.
In contrast, European sales climbed 4% and the US rose 10%. Excluding China, global car sales actually grew 2%.
>>> Cambridge Professor Jason Arday Accused of Plagiarism in Academic Work
Mercedes-Benz has launched several new models in China, including the CLA, but has struggled to compete with newer local brands.
Despite the setbacks, the company stated that the Chinese market remains of high strategic importance.
The profit boost came from Mercedes-Benz Financial Services, which saw a 70% jump in adjusted EBIT to €492 million, thanks to higher portfolio margins and lower expenses.
Total contract volume grew 2.2% on US expansion and favorable exchange rates.
>>> Johnnie Walker's Widow Shares Caregiving Video to Back Social Care Reform
Additionally, the broader Mercedes group benefited from €417 million in proceeds from the partial sale of its stake in Daimler Truck.
