Mercedes-Benz Group said sales in its core car division fell 8% year over year in the third quarter. The division delivered 407,200 vehicles.

The decline was driven primarily by a 31% sales drop in China, a key market for the automaker. The company cited a challenging market environment and intense competition.

Sales in the Top-End vehicle segment fell 21%, affected by the slowdown in China and model changeovers.

Sales grew 6% in the United States and 5% in Europe. Group-wide battery-electric vehicle sales rose 52% to 78,100 units.