Mercedes profits plunged in the second quarter of the year amid a sharp drop in sales of its electric vehicles.

Underlying adjusted earnings fell by 28pc to €2.8bn (£2.3bn) as it reported lower sales volumes.

It sold 45,843 battery electric cars during the three months to June, which was a drop of 25pc compared to the same period last year.

Electric vehicle sales were down 17pc over the first half of the year to 93,364.

It said in its results: “The pace of the ramp-up of electric vehicles slowed in key markets.”

It added that this had been partially a result of the end of the environmental bonus for electric vehicles in Germany, which was brought to an end in December.

The company also slightly lowered its carmaking margin outlook to 10pc to 11pc from 11pc to 12pc.

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