Due to fierce competition, Mercedes profits declined in the third quarter

   Profits of German company Mercedes-Benz declined in the current year's third quarter due to intense competition in the car market, as well as supply chain issues.

The company's pre-tax profits across the group fell by 6.8 percent year-on-year to 4.8 billion euros ($5.1 billion), slightly exceeding expectations.

Revenue from the renowned German company's small trucks segment surged by 44 percent to 715 million euros.

Overall, the group's revenue in the third quarter declined by 1.4 percent year-on-year to 37.2 billion euros. During trading on Thursday, Mercedes-Benz's share price dropped by over 6 percent to 57.63 euros.

Mercedes stated that the competitive electric car market, experiencing significant price reductions and supply chain issues, might lead the company's returns to reach the lower end of the adjusted expectations, ranging between 12 and 14 percent.

However, the company affirmed its commitment to electric car-related targets, but it could enhance profits with better returns from the combustion engine car sector if profit margins on electric vehicles remain lower than previously anticipated, as stated by the company's CFO in a call with analysts.