Mercedes-Benz’s Indian subsidiary delivered a fresh set of record figures on Monday, reporting third-quarter sales of 5,422 vehicles — a 6% improvement over the same period a year earlier. The momentum stretches well beyond a single quarter: across January to September 2026, the Stuttgart-based premium manufacturer handed over 15,190 vehicles to Indian customers, an 8% increase on the prior-year stretch.
That performance offers meaningful support in a growth region at a time when several of the company’s established core markets are contending with economic headwinds. Rising appetite for luxury cars on the subcontinent is providing tangible relief for the carmaker’s global footprint.
A Legislative Threat in Washington
Attention, however, is also fixed on the US Congress, where negotiations are underway over a bill aimed at Chinese vehicles — and which could inadvertently sweep Mercedes-Benz into its scope. Under the draft currently on the table, market access would be restricted for automakers with more than 15% Chinese ownership. Reuters has put the passive Chinese stake in Mercedes-Benz at just under 20%, a level that would place the company squarely within the proposed rule’s reach.
US Senator Bernie Moreno said talks are ongoing to ensure the planned regulation does not unintentionally shut Mercedes-Benz out of the US market. How the final wording is drafted carries substantial weight for the group, given the importance of unrestricted access to North America.
Citi Trims Its Target on Weaker Car Outlook
Geopolitical uncertainty is not the only source of pressure. Citi analysts cut their price target on the stock yesterday, lowering it from EUR 51 to EUR 42, citing more subdued prospects for the passenger-car segment. The brokerage now expects an adjusted operating margin (EBIT) in the cars division of below 3.0% for full-year 2026, and anticipates only a modest recovery in 2027.
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The shares were trading at EUR 40.51 on the day, having closed at EUR 40.31 in the previous session. Since the start of the year, the stock has shed 34%.
Cost Levers and Supplier Ties
Management is moving on several fronts to keep costs aligned with the shifting landscape. Roughly a week ago, the group confirmed it will relaunch its voluntary severance program for German employees, with the measures expected to begin in December across indirect corporate functions. Both collective-agreement staff and parts of the leadership ranks are to receive individual offers, and any departure requires the consent of both employee and company — the principle of double voluntariness.
On the operational side, Mercedes-Benz is leaning on established supplier relationships. On October 1, it extended its strategic partnership with lubricant maker FUCHS SE, covering tailored lubricant solutions for the manufacturer’s global service network and joint work on innovation and sustainability.
Investors will get a clearer read on the group’s actual performance in a matter of weeks. Mercedes-Benz has scheduled the release of its third-quarter 2026 report for October 28.
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