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 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.

Chinese automaker BYD Co. has moved to fully control a joint venture it had in China with Mercedes-Benz Group AG, as an increasing number of foreign carmakers dial back their exposure to the world’s biggest auto market.

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 has announced a major recall in China affecting over 500,000 vehicles due to a technical fault. Begins November 27. The issue stems from a defective wheel speed sens