Daimler AG reported a 10 percent rise in third-quarter profit, buoyed by robust demand for Mercedes-Benz luxury cars in China as the brand rolls out the new E-Class sedan.

Adjusted earnings before interest and taxes increased to 4.01 billion euros ($4.37 billion) from 3.66 billion euros a year ago, the Stuttgart, Germany-based company said Friday in a statement. Analysts had expected operating profit of 3.76 billion euros, according to the average of six estimates compiled by Bloomberg.

While Mercedes-Benz is on track to overtake BMW’s namesake brand in global sales for the first time in more than a decade, the automaker is under pressure to maintain profitability as spending to develop self-driving and electric-vehicle technologies surges. At the same time, Daimler, also the world’s largest maker of heavy-duty vehicles, is battling with declining demand in key truck markets.

Deliveries of Mercedes-Benz cars jumped 12 percent in the first nine months of 2016, bolstered by a 30 percent surge in China as sport utility vehicles like the GLC woo new buyers.

Earnings at the truck division, which cut its profit forecast in May because of lower demand in the U.S. and Middle East, tumbled 37 percent to 510 million euros. Truck deliveries tumbled 24 percent to 97,100 vehicles in the quarter.