A heritage luxury icon trades at a deep discount while betting on a 2026 product blitz and MB.OS to re-rate Mercedes into a software-led, electric-first profit machine.
Overview
Mercedes-Benz Group AG is undergoing a major reinvention from a traditional ICE-centric automaker into a software-driven, electric-first luxury brand. In FY2025 it delivered ~2.16M vehicles globally (down ~10%), but maintained resilience through a “Value over Volume” approach that emphasizes high-margin Top-End models over mass-market scale. Europe was the largest region (634.6k units), with significant exposure to Asia/China and North America. The business is organized into Cars (≈70% of turnover, anchored by AMG, Maybach, and G-Class), Vans (a profitable secondary pillar), and Mobility (financing/leasing/insurance plus charging and fleet initiatives). Demand at the top end stayed strong despite softer total volumes—Maybach penetration of S-Class is particularly high—supporting structural profitability even as competition intensifies from Tesla and Chinese EV entrants. Heading into 2026, Mercedes plans a major product offensive (15+ launches/refreshes, including electric CLA with full MB.OS and an updated S-Class) aimed at regaining share and redefining “digital luxury.”