Benz Group AG cut its financial forecast for the year due to a rapid deterioration of its business in China, marking the latest blow to Germany’s struggling industrial sector.Adjusted returns in the main cars unit are now expected in a range of between 7.

Mercedes-Benz Cars now expects its adjusted return on sales to be between 7.5 per cent and 8.5 per cent, compared with a prior forecast of as much as 11 per cent, according to a statement Thursday. Mercedes-Benz Group said its earnings before interest and taxes is now expected to be “significantly below” the prior year level.

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”.

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,

Mercedes-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.

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.

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.