German luxury automaker Daimler will recall 2.6 million Mercedes-Benz vehicles in China due to a software design issue, the country's market regulator said on Friday.

Software may fail to communicate a vehicle's correct location in the event of a crash, China's State Administration for Market Regulation said in a statement. Daimler declined to comment further on the recall.

Last month Mercedes-Benz USA said it was recalling 1.29 million vehicles sold since 2016 for a similar reason.