(Reuters) -Mercedes-Benz on Friday narrowed its annual forecast for the profit margin in its core car division as the German luxury automaker continues to struggle amid model changeover and a subdued market environment in Asia.

The company now expects an adjusted return on sales in the range of 10-11% this year, down from 10-12% expected before.

Mercedes' cars division was able to achieve a 10.2% return on sales in the second quarter, in line with its annual guidance.

German automakers are struggling with lacklustre demand for electric vehicles coupled with tough local competition in China, supply bottlenecks and persistently high interest rates.

In the April-to-June period, the group reported a 27.5% fall in adjusted earnings in its car division, versus LSEG's estimate of a 26% decline.

At group level, earnings before interest and taxes (EBIT) dropped in the quarter by 19.1% in line with LSEG's consensus.