(Reuters) -BMW on Wednesday reported a 61% drop in its quarterly third-quarter revenue that missed analyst expectations due to slumping China gross sales and brake issues, however mentioned it was on observe to fulfill its adjusted full-year monetary outlook.

In an announcement, BMW (ETR:) CEO Oliver Zipse mentioned that after “extraordinary challenges within the third quarter… within the fourth quarter we’re again on observe for stronger earnings in an effort to

obtain our annual targets.”

BMW lowered its steerage for the 12 months again in September citing sluggish Chinese language demand and issues with a braking system equipped by Continental.

Final month, the premium German automaker reported that its third-quarter gross sales in China had fallen by a 3rd.

Rival German automakers Volkswagen (ETR:) and Mercedes-Benz (OTC:) are additionally fighting falling gross sales in China amid a weak economic system and intense competitors.

BMW posted an working revenue of 1.7 billion euros ($1.82 billion) for the third quarter, down 61% from the 4.352 billion euros in the identical quarter final 12 months. Analysts had anticipated an working revenue of 1.8 billion euros.

The automaker’s income fell 15.7% to 32.4 billion euros from 38.46 billion euros a 12 months earlier, beneath analyst expectations of 34.3 billion euros.

The corporate mentioned that it’s nonetheless on observe for a 2024 working revenue margin of between 6% and seven%.

($1 = 0.9179 euros)