Mercedes-Benz has narrowed its annual profit margin forecast for its core car division to 10% to 11% due to intense competition in China, down from 10% to 12%. In the second quarter, the car division achieved a 10.2% return on sales, but adjusted earnings fell short of expectations. Sales dropped 6% in the first half, with electric vehicle sales down 17%. Despite a cautious outlook for China, new models are expected to boost sales in the second half of the year, especially in the top-end segment. Group-level earnings before interest and taxes dropped by 19.1% in the second quarter.