VALUATION HIGHLIGHTS

1. Mercedes Benz Cars & Vans constitute 63% of the Trefis price estimate for Mercedes-Benz Group AG's stock.
2. Mercedes-Benz Mobility constitutes 33% of the Trefis price estimate for Mercedes-Benz Group AG's stock.

WHAT HAS CHANGED?

Latest Earnings: Q3 FY'25

Mercedes-Benz reported Q3 FY'25 revenue of 34.5 billion EUR, down 6.7% year-over-year, while group earnings per share dropped to 1.81 EUR, impacted by lower overall vehicle volumes and supply chain constraints in key markets. Primary drivers included softer consumer demand for luxury passenger cars in Asia and transition costs associated with ramping up next-generation electric vehicle platforms.

Note: Mercedes-Benz's FY'24 ended on December 31, 2024. Q3 FY'25 ended on September 30, 2025.

Expansion of Electric Vehicle Architecture and Autonomous Driving Technology

Mercedes-Benz continues to roll out its proprietary MB.OS operating system across its upcoming vehicle portfolio while expanding automated driving capabilities. The company is advancing its Drive Pilot Level 3 conditional automated driving system and restructuring core battery supplier partnerships to improve long-term electrification margins.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Mercedes-Benz's value that present opportunities for upside or downside to the current Trefis price estimate:

Mercedes-Benz Cars

• Vehicle Average Selling Price: Premium pricing strategy on top-end luxury models like Maybach and G-Class supports high unit margins. An increase in high-end vehicle mix toward 20% provides upside, whereas pricing pressure in lower-tier luxury segments poses downside risk.


• Electric Vehicle Adoption Rate: A slower transition to battery electric vehicles could weigh on medium-term margin expansion, while successful scale of the new modular architecture offers significant operational leverage.

For additional details, select a division from the interactive Trefis split for Mercedes-Benz at the top of the page.

BUSINESS SUMMARY

Mercedes-Benz Group AG is a leading global luxury automotive manufacturer operating across passenger cars, premium vans, and financial services, with a strategic emphasis on high-margin top-end luxury vehicles, software-driven architecture, and progressive fleet electrification.

SOURCES OF VALUE

Mercedes-Benz Cars remains the primary revenue and earnings contributor for the group, driven by strong brand heritage and pricing power.

Dominant Position in Top-End Luxury Segment

The Mercedes-Maybach, S-Class, and AMG portfolios deliver industry-leading average selling prices and robust gross profit margins, giving the company a distinct competitive advantage over mass-market premium automakers.

Robust Financial Services and Fleet Management Ecosystem

Mercedes-Benz Mobility provides financing, leasing, and insurance solutions that drive customer retention, stabilize group cash flow, and support residual values for new and pre-owned vehicle fleets.

KEY TRENDS

Shift Toward Software-Defined Vehicles and Autonomous Driving

Automakers are increasingly monetizing over-the-air updates, driver assistance software, and connected services, creating recurring high-margin revenue streams alongside traditional vehicle sales.

Efficiency Programs and Cost Structure Optimization

Mercedes-Benz is executing fixed-cost reduction targets, streamlining its manufacturing footprint, and reallocating capital toward core battery electric platforms to maintain profitability through economic cycles.