(Yicai) Aug. 18 -- Sales of German automotive giant Mercedes-Benz Group in China have plunged to the lowest in nearly five years last month.

Mercedes-Benz's sales in China fell over 40 percent to 26,653 units in July from the previous month, according to data from third-party automotive industry platform Dongchedi. The carmaker’s second-lowest monthly sales in the period were around 36,000 units.

Despite large price cuts, Mercedes-Benz's sales declined 14 percent in the first half of the year and are expected to continue to face significant pressure in the second half.

Mercedes-Benz had previously maintained relatively stable prices in China, but it eventually joined the price war this year. Prices of models under Mercedes-Benz’s C-Class were slashed by up to 36 percent to CNY120,000 (USD16,715), while those under the E-Class were trimmed by about 20 percent or CNY100,000, according to Dongchedi data.

Traditional luxury carmakers did not maintain their market share when the industry transitioned to electric vehicles. In fact, Mercedes-Benz cut the prices of its EQA and EQB electric models by half, yet their sales were only 103 and 233 units, respectively, in July, Dongchedi data showed.

Earlier this year, Mercedes-Benz executives said that the EQ series would no longer operate independently and be integrated into the mainstream product lineup because of the intense competition in the Chinese market.

Ahead of the Shanghai International Automobile Industry Exhibition in April, Mercedes-Benz unveiled a new all-electric CLA, the first model based on its new China-made EV platform, which will hit the market this fall.

According to Mercedes-Benz's latest plan, the company will launch 36 new models by 2027, including 17 electric and seven China-exclusive ones.

Editor: Futura Costaglione