Mercedes-Benz Group said sluggish demand globally prompted a 54% drop in profit over the third quarter.
Net profit fell to €1.72 billion (£1.44 billion) over the three months to September, the luxury carmaker said on Friday, on the back of a 7% drop in revenue to €34.5 billion.
This came as sales in the likes of China and Germany fell by 16.6% and 25% respectively on weak demand.
Some 503,600 cars were sold over the period, against 510,600 a year earlier.
Chief financial officer Harald Wilhelm noted the results did “not meet ambitions,” but said the carmaker continued to generate cash flows “in challenging times”.
“We are taking a prudent view about market evolution going forward and we will step up all efforts on further efficiency increases and cost improvements across the business,” he added.
Shares fell 2.6% following the update.