The Chinese State Administration for Market Regulation (SAMR) announced on Friday that German vehicle manufacturer Daimler AG would pull 2.6 million Mercedes-Benz cars from China's market.

The regulator instructed the German company to recall the vehicles due to software-related issues, according to the statement.

In December, Daimler CEO Ola Kaellenius unveiled the Stuttgart-based firm plans to begin manufacturing new electric and hybrid models in China over the next three years.