Mazda Motor joined a growing list of multinational carmakers warning of a price war in China as brands jostle for sales amid a sharp slowdown.

Mazda is concerned about excessive discounting in China, with industrywide sales probably declining in the second half, Masahiro Moro, the executive in charge of global marketing and sales, told reporters in Tokyo on Thursday.

The carmaker, which counts China as its third-largest market by volume, will try to meet its annual sales target there without engaging in a price war, he said.

Automakers such as Hyundai Motor have said they will boost incentive spending in China to revive flagging sales in the world's biggest market.

Demand has slowed this year due to a combination of moderating economic growth, caps on vehicle registrations and a volatile stock market that has diverted and locked in funds otherwise available for big-ticket purchases.

Mazda's net income fell 25 percent to 36.8 billion yen ($296.3 million) in the second quarter, exceeding the 35.3 billion yen average of analysts' estimates compiled by Bloomberg.

The automaker, which aims to sell 220,000 units in China this year, reported that deliveries rose 17 percent to 115,979 vehicles in the six months through June.

PSA Peugeot Citroen Chief Executive Officer Carlos Tavares said that a "price war" is looming in China, while Volkswagen Chief Financial Officer Hans Dieter Poetsch said market improvement "will take time".

Earlier this month, both Hyundai and Kia Motors said they would boost incentive spending and push sales of sport utility vehicles in China. Other automakers from Volkswagen to Toyota Motor have agreed to give financial support to their dealers in China, where the market for passenger vehicles is headed for its slowest expansion in four years.