German luxury carmaker Mercedes-Benz said on Wednesday its net profits in the third quarter doubled year-on-year, to almost €4 billion, driven by better sales in China.

Despite continued problems with supply chains, the company saw revenues increase by 19 per cent, to €37.7 billion.

Incentives from the Chinese government to encourage people to buy cars helped to boost car sales in the company's biggest market, Mercedes said. 

The group's vehicle sales in China – its biggest market – rose to 222,600 in the third quarter, an increase of almost 70 per cent on the same period a year earlier. 

In contrast, the group sold just 146,100 vehicles in Europe, it said.