Mercedes-Benz cut its sales expectations for the year, becoming the latest automaker to warn of intensifying pressure in China despite noting that cost-saving measures will support profitability this year. The company now expects to sell slightly fewer cars this year than last, while group revenue is also expected to come in slightly below last year, having previously guided to flat unit sales and revenue.

However, Mercedes-Benz said it would sell a greater share of electric-vehicles this year than expected as it backed its other guidance metrics, including for significantly higher earnings before interest and taxes and an adjusted return on sales margin in the car unit of 3%-5%.

"Despite a demanding market environment, we remained on track in the second quarter while continuing to advance our product launch program," said Chief Executive Ola Kallenius.