Mercedes-Benz cut its full-year profit margin target for the second time in less than two months, hitting European auto stocks as it joined a growing number of rivals that are blaming a weakening Chinese car market,

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,

The German luxury carmaker said the move was triggered by the further deterioration of the macroeconomic environment, specifically in China.

Mercedes-Benz’s all-important China motor is sputtering. The $64 billion luxury carmaker warned of collapsing earnings and free cash flow this year, as a real estate bust in the People’s Republic means less demand for upmarket rides.

Las acciones de Mercedes-Benz Group AG registraron la mayor caída en cuatro años después de que una desaceleración cada vez más profunda en China llevara al mayor fabricante de automóviles de lujo del mundo a recortar sus perspectivas.

Mercedes-Benz and its Chinese joint venture with BAIC Motor will recall a total of 523,094 imported and domestically manufactured vehicles in China over potential safety hazards, China's market regulator said on Friday.

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”.