FRANKFURT, Germany -- Daimler AG's Mercedes brand says it's facing more difficult market conditions in Europe, even in its home market of Germany.

Unit sales of Daimler's luxury brand rose 0.9 per cent to 121,542 vehicles worldwide compared to the same month a year ago, helped by strong increases in China, Russia and the United States.

But sales fell 4.3 per cent in Western Europe and by 2.9 per cent in Germany.

For the first six months, sales rose 6.9 per cent at 652,924, and Daimler says it is on track for record sales for the year.

Mercedes marketing chief Joachim Schmidt on Wednesday cited ``difficult market conditions in Southern Europe'' but pointed to stronger sales in the U.S. The company sold 7.6 per cent more there in June and 15.9 per cent more in the first six months.