Mercedes-Benz is facing a challenging production landscape, with a notable decline in output projected through 2026. The company experienced an 8.5% drop in car production (to 1.8 million units) and a 10.6% reduction in van output (to 353,710 units) in 2025. Instead of fully transitioning to electric vehicle production, Mercedes has opted for multi-fuel flexibility at its plants, allowing continued production of internal combustion engine models.
Automotive World’s forecast indicates a further decline of 11% in 2026, with output expected to dip just below 1.6 million units. This drop is largely attributed to tough market conditions, particularly for foreign OEMs operating in China. However, the year 2027 could signal the start of a recovery, primarily driven by factories in Hungary and Alabama.
Despite potential recovery, the forecast suggests that average production from 2027 to 2030 will still be 7.7% below levels prior to 2025. The assumption is that new product launches in China will help stabilize the decline, though there are concerns that even modest improvements may be overly optimistic.
For deeper insights, you can explore the full report on Mercedes-Benz’s performance and production outlook.
