Mercedes-Benz posted first‑quarter earnings before interest and taxes of 1.9 billion euros ($2.23 billion), a 17 % drop from the same period a year earlier. Despite the revenue slump, the German luxury carmaker signalled confidence that operating profit will rebound sharply. Management points to a pipeline of fresh models as the engine for revitalising sluggish sales. The figure excludes one‑off items and reflects core operating performance.

The Q1 decline reflects broader challenges in China, where demand for premium vehicles has softened amid economic uncertainty. Mercedes‑Benz’s Chinese sales fell, dragging overall figures lower, yet the firm remains upbeat, citing stronger performance in Europe and North America. Investors will watch whether new releases can offset regional weakness. A rebound in Chinese luxury demand remains uncertain, prompting the firm to diversify its market exposure.

Analysts estimate the turnaround will require at least a 10 % lift in average selling price or volume growth to recoup the shortfall. With the upcoming EQ electric line and refreshed S‑Class slated for launch, Mercedes‑Benz aims to restore margin expansion before year‑end. If new models hit targets, group could close earnings gap this year.