Mercedes-Benz has joined Volkswagen and BMW in cutting its 2026 revenue forecast as the Chinese revelatory slump bites. The Stuttgart‑based automaker said revenue would be slightly lower than its prior €132.2bn estimate, citing fierce competition, cautious consumers and ongoing model changes. The downturn is mirrored by a 30 per cent fall in second‑quarter sales, while operating profit still rose from €1.3bn to €1.5bn, buoyed by strong van and finance units.

Volkswagen last week trimmed its outlook by up to 3 per cent, and BMW has already cut profit guidance, citing Chinese weakness and the Iran war. Both firms are accelerating cost cuts and job‑reductions, underscoring the twin threat local manufacturers pose in China, the world’s biggest auto market.

Mercedes‑Benz’s forecast cut comes after a sharp decline in China, where sales were dented by “intense competition, cautious consumer sentiment and ongoing model changes.” The German carmaker also reported gains in the US and Europe, but those were outweighed by the China slump.

The trio’s woes highlight how a slowdown in the Chinese market is reshaping the outlook for European automakers worldwide.