h2 Financial Performance: Profit and Loss
In the first half of 2025, Mercedes-Benz reported a substantial 55% drop in operating profit (EBIT), which fell from €7.9 billion to approximately €3.6 billion. Net profit for H1 2025 was €2.7 billion, significantly down from €6.1 billion in the same period of 2024. Revenue dropped from €72.6 billion to around €66.4 billion, an 8.6% decline year-over-year.
Second quarter earnings were especially weak, with EBIT plunging nearly 70% to €1.27 billion, and net profit standing at just €0.95 per share. For the full year 2025, Mercedes forecasts an adjusted return on car sales of just 4–6%, down from 8.1% in 2024.
These figures reflect broader global trends: group sales fell by 9% in Q2 to 547,100 units across cars and vans, including a 9% drop in the passenger car division alone.
Regional Market Performance
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Europe: Held relatively steady in the first half of 2025, down just 3% year-over-year. Germany proved more resilient, with a 7% sales increase in Q2, supported by new EV launches and demand for top-end models.
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North America: Fell by 6% in H1 2025, with the U.S. down 12% in Q2. Tariffs and fierce domestic competition challenged results.
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Asia: Suffered the largest decline, with sales down 11% for H1 and 16% in Q2. China, in particular, dropped 19% in Q2, greatly impacting global results due to local competition.
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Rest of World: Provided some relief, with sales up 20% year-over-year on a small base.
Best-Selling Mercedes Models in 2025
The Mercedes GLC remains the top-selling Mercedes vehicle globally, notching a 9% increase in sales in Q2 2025 thanks to its broad appeal as a premium SUV. The E-Class and G-Class were also bright spots, with the E-Class seeing particularly strong growth following a successful redesign, and the G-Class setting new sales records (up 12% year-over-year globally).
The new CLE coupe experienced a remarkable 32% rise in global sales and a 66% increase year-to-date, showing growing consumer interest in sporty luxury models. Plug-in hybrid (PHEV) vehicles also recorded strong performance, with sales rising globally, supported by models such as the EQB and EQS, and PHEV volumes up 13% year-over-year.
Weakest Sellers and Underperforming Segments
On the downside, traditional Entry segment models faced the biggest contractions—down 12% in H1 2025. Electric vehicle (EV) sales fell sharply, dropping 19% in H1 and 24% in Q2, to just 35,000 units (BEVs) in Q2 2025. Reduced consumer enthusiasm, competition in China, and the phase-out of the electric smart model in Europe contributed to EV underperformance, dropping their share of sales from 18% to 14% year-over-year.
Among specific models, the S550 has been highlighted as a poor performer in 2025, plagued by high maintenance costs, rapid depreciation, and frequent mechanical issues. Its resale value can drop as much as 75% within five years, making it the least attractive Mercedes for cost-conscious buyers.
Segment and Geographic Table
| Region | H1 2025 Sales | YoY Change | Best Performing Models | Noted Weaknesses |
|---|---|---|---|---|
| Europe | 308,300 | -3% | GLC, CLE, Top-End | Entry segment, Smart EV phase-out |
| Germany | 98,100 | -2% | Top-End, new E-Class | — |
| Asia | 389,000 | -11% | GLC, Maybach | Core/Entry, China EV decline |
| China | 293,200 | -14% | Maybach, S-Class | EVs, Core segment |
| North America | 157,500 | -6% | G-Class, AMG | Entry segment |
| USA | 142,000 | -6% | AMG, PHEVs | Tariff impact, Entry segment |
| Rest of World | 45,100 | +20% | CLE Coupe, SUVs | Limited volumes |
| Model/Segment | 2025 Performance |
|---|---|
| GLC | Top-selling, +9% |
| G-Class | Record sales, +12% |
| E-Class | Very strong, +32% |
| CLE Coupe | +32% global, +66% YTD |
| S-Class/S550 | Worst performer, high depreciation |
| Entry Segment | -12% YoY |
| Electric vehicles | -19% H1, -24% Q2 |
| PHEV | +13% YoY |
Key Insights for 2025
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Mercedes-Benz’s profit and volume are under severe pressure in 2025, largely due to China’s slowdown, U.S. and EU tariffs, and weaker global EV demand.
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Top-End models (GLC, G-Class, AMG, Maybach) remain demand drivers, especially in luxury and high-margin segments.
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PHEVs outperformed full EVs, defying broader electric vehicle market cooling trends.
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Entry-level and older-model luxury sedans like the S-Class/S550 lost consumer appeal due to running costs, reliability, and value concerns.
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The company responded with aggressive cost cutting, a renewed product focus (including new CLA launches), and hopes pinned on the next wave of EVs and hybrids.
Outlook
Mercedes expects 2025’s challenges to continue through the year, with ongoing cost-control efforts and a fresh emphasis on new electrified models to restore momentum. While profitability may remain subdued, the foundations laid for next-generation products and global digitalization are intended to turn the tide as markets stabilize.
This comprehensive performance snapshot reflects Mercedes’ evolving business landscape, illustrating where the brand still leads—and where urgent adaptation is needed.
