PARIS, Sept 30 (Reuters) - Stellantis NV ( STLA )

revised on Monday its guidance downward, citing a deterioration

in global industry dynamics and Chinese competition on electric

vehicles among other factors.

Its adjusted profit margin is now expected to be between 5.5

and 7.0% for the year, down from "double digit" previously

forecast, the company said, adding industrial free cash flow is

now expected to range between -5 billion to -10 billion euros,

down from a prior "positive" projection.

The French-Italian carmaker said sales had been lower than

expected in the second half of the year in most regions.

The profit warning comes days after

Volkswagen

cut its annual outlook for the second time in three months,

blaming it on weaker-than-expected performance at its passenger

car division.

It also adds pressure to the European Union which is in

the process of finalising plans on possible tariffs on Chinese

electric vehicles.

Stellantis ( STLA ) said "competitive dynamics have intensified due

to both rising industry supply, as well as increased Chinese

competition."

(Writing by Makini Brice, editing by Tassilo Hummel)