BMW AG and Mercedes-Benz car sales in China fell in the third quarter of the year, as weak consumer sentiment weighed on luxury goods markets.

BMW and Mini sales down 30%in its biggest decline in four-plus years. The Mercedes sales drop 13% in the same period, with expensive models such as the S-Class and the Maybach sedan leading the decline.

The aforementioned results, combined with the slowdown in the development of electric cars in Europe, led the two German automakers to issue warnings regarding their profitability. According to Bloomberg, the two giants may also suffer losses from escalating trade tensions: Beijing has said it is considering raising tariffs on imported cars with large engines in retaliation for the European Union’s decision to impose tariffs of up to 45%. in Chinese electric cars.

The 30% drop in BMW and Mini sales in China, spurred the total sales of the world’s largest car manufacturer down 13%. Also, BMW management emphasized that the recall of a brake system affected vehicle deliveries.

For Mercedes the overall 12% drop in sales in its flagship cars, is a step back in its growth drive. This is yet another warning sign for the German car industry, which is faced with high costs at home and with local competition dominating the electric car market in China.

BMW and Mercedes shares were little changed on Thursday, however, since the start of the year have recorded a decline of 23% and 7% respectively. After the big three German automakers (including Volkswagen AG) moved last September to cut their size estimates, investors have been bracing for further weakness in car deliveries.