Mercedes-Benz Group AG shares fell the most in four years after a deepening slowdown in China prompted the world’s biggest luxury-car maker to cut its outlook.

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

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.

German auto giant Mercedes-Benz is recalling more than half a million cars in China due to a technical defect. The Chinese market regulation authority said on Friday that the company has presented a recall plan which is due to take effect from November 27.

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.

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 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.