Diesels have been under heavy scrutiny since U.S. authorities caught Volkswagen using illegal engine control software that turned off diesel emission controls in everyday driving.
Afterwards he said the ministry had ordered the "immediate" recall of Daimler models in Germany because they contained "illegal shutdown devices".
The German transport Ministry, the Kraftfahrt-Bundesamt (KBA), has ordered the carmaker to recall 238,000 vehicles to rectify unauthorised diesel emissions cheating software.
Five models in total are reported to be affected, including the volume-selling Mercedes C-Class - the UK's ninth most popular auto past year - and GLC SUV variants.
Daimler boss Dieter Zetsche was summoned to meet with German Transport Minister Andreas Scheuer on Monday to discuss the KBA's findings.
In January 2017, US regulators ordered a stop-sale of several Fiat Chrysler Automobiles' diesel-powered models, including its Jeep Grand Cherokee, after regulators said it emitted more nitrogen oxide than allowed by law. Among the functions brought into question by the German Transport Ministry is the software used to regulate the amount of Ad Blue solution injected into the SCR filter that's fitted to the recalled vehicles.
Models affected include the Mercedes Benz C-Class- the UK's ninth best-selling model last year
The company said it is co-operating with authorities.
Similar to Volkswagen's dieselgate scandal, it means these cars produce increased emission of harmful nitrogen oxides in the hands of customers compared to when they're tested for type approval by regulators.
Zetsche or Daimler didn't say anything about what the company's software may be created to do, but it's the second large fix for the automaker in as many years.
Thus far, Daimler continues to deny any legal wrongdoing when it comes to diesels and the automaker will avoid any fines stemming from this issue as long as it carries out the recall.
The ordered recall follows Daimler's decision to voluntarily recall three million vehicles in the European Union previous year to perform software updates and improve emissions performance.
Ellinghorst estimated the cost to Daimler to be less than 100 million euros.