BERLIN (Reuters) - 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.

The company sold 503,600 cars, down 1% compared with the same quarter last year. Of those, 42,500 were battery-electric vehicles, representing a 31% year-on-year drop.

In China, sales were down 13%, at 170,700 cars, as lower demand, particularly for luxury goods, and ongoing price reductions impacted sales, according to Mercedes-Benz.

The product range in China will be improved this year with further Intelligent Drive updates in the core segment, it added.

(Writing by Miranda Murray, Editing by Friederike Heine)