Mercedes-Benz Group AG enters a decisive period this month, with a trio of April events set to test its recovery narrative against a backdrop of stark regional contrasts and strategic renewal. The automaker’s first-quarter figures, due at month’s end, will reveal whether operational improvements can offset a deepening sales crisis in China.
The world’s third-largest car market continues to be a significant drag. Deliveries in China plummeted 27% in Q1, accelerating from a 19% decline in the prior quarter. This sharp downturn pressured global passenger car deliveries, which fell 6% to 419,400 units. The decline was partially cushioned by growth elsewhere, with the US market surging 20%, Germany up 9%, and Europe overall growing 7%. Excluding China, sales increased by 5%.
Financially, the company is emerging from a difficult year. Its adjusted EBIT fell sharply from EUR 13.7 billion to EUR 8.2 billion in the last fiscal year. This weakness directly impacts shareholder returns, with investors voting on a reduced dividend of EUR 3.50 per share at the upcoming Virtual Annual Meeting on April 16. The proposed payout is 80 cents lower than the previous year, with an ex-dividend date of April 17.
Simultaneously, the company is steering its governance toward future technologies. The supervisory board is set for a refresh, with management proposing two new members specializing in key strategic areas. Katharina Beumelburg brings expertise in industrial transformation and global decarbonization, while Rashmi Misra, formerly Chief AI Officer at Analog Devices, will contribute deep knowledge in artificial intelligence strategy. They will succeed Dame Polly Courtice and Helene Svahn.
A bright spot emerges from the company’s electric vehicle offensive, spearheaded by the new all-electric CLA. Battery-electric vehicle (BEV) sales rose 11% in the first quarter to 50,400 units, meaning one in ten cars sold was fully electric. In Europe, the BEV business grew by an impressive 34%. Demand for the CLA currently outstrips production capacity, with the model already running on three shifts. The vehicle recently won the European “Car of the Year” award, a first for Mercedes since 1974.
The stock market reflects this period of transition. Shares recently traded at EUR 53.23, approximately 14% below their yearly high and showing a year-to-date loss of over eleven percent. The price remains below the 50-day line of EUR 56.00.
Management has set ambitious targets for 2026, forecasting an EBIT significantly above the prior year’s level and targeting an adjusted return on sales of 3-5% for the cars division. The upcoming financial calendar provides immediate checkpoints. A pre-close call for Q1 2026 is scheduled for April 13, followed by the Annual Meeting on April 16. The official interim report for the first quarter will be published on April 29, offering the first substantive evidence of whether the promised operational recovery is taking hold.