Mercedes-Benz Group shares fell 8% on Friday after the German carmaker made another cut to its full-year guidance, citing a slowdown in car sales caused by a slump in China’s economy. The Stuttgart company said the cut to its outlook,

Chief executive Ola Källenius told analysts on Friday that the company’s issues stemmed “mainly [from] China” but added that in other markets, such as Europe, Mercedes-Benz was also still feeling “the [impact] of higher interest rates”.

Benz cut its full-year profit margin target for the second time in less than two months, joining a growing number of rivals that are blaming a weakening Chinese car market, the world's largest. The news,

Mercedes-Benz Group AG cuts its financial forecast for the year as the luxury-car maker cited a rapid deterioration of its business in China.

Mercedes shares fell more than 8% Friday after the German carmaker cut its 2024 guidance on the back of weaker demand from China.

Benz on Thursday cut its full-year profit margin for the second time in less than two months, after overall sales volume fell in China. The ongoing weakness of the Chinese market for luxury cars prompted the Stuttgart carmaker to trim its outlook after having already done so as recently as July.

Mercedes-Benz Group AG cut its financial forecast due to a rapid deterioration of its business in China, marking the latest blow to Germany’s struggling industrial sector.