Mercedes-Benz reported a 50% drop in full-year profits, plummeting to $4.5 billion from $9 billion in 2024. This decline stems from a 9.2% overall sales decrease, driven primarily by a severe 19% slump in its crucial Chinese market. The data underscores intensifying competition from domestic Chinese automakers like BYD and Geely, who are aggressively capturing market share with lower-priced, technologically advanced models. China's market share erosion is a critical factor, forcing Mercedes-Benz to potentially reconsider pricing strategies and investment priorities in its most vital growth region.