Germany's Mercedes Benz Group Group (ETR:MBGn) has reported a drop in third-quarter sales, dented by weak economic conditions in China and a "subdued" market for battery-powered electric vehicles (EVs).

Mercedes-Benz saw a slight drop in cars sales in the third quarter as weaker demand, particularly in Asia, outweighed improved product availability, the carmaker said on Thursday.

BMW AG and Mercedes-Benz Group AG saw sales plunge in China in the third quarter, as ongoing weakness in their biggest market weighed on luxury spending.

BMW (ETR:BMWG) has posted a 13% slide in third-quarter group-wide sales due in part to a steep slide in demand in China and a "globally challenging market." The German luxury car maker reported group automotive sales of 540,

By Andrey Sychev and Miranda Murray BERLIN (Reuters) -Sluggish demand and stiff competition in China hit third quarter sales at BMW and Mercedes, the German luxury automakers said on Thursday. The German car sector is facing multiple challenges,