Mercedes shares fell more than 6% 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,

Top-end German carmakers have joined expensive French handbags among the products hit by weak consumer sentiment in the country.

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-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.

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 AG Chief Executive Officer Ola Källenius pledged he’ll do whatever it takes to bolster returns after the luxury-car maker warned on profit over sluggish sales in China.