Imported cars cut prices amid China's anti-monopoly probes

Want China Times, Staff Reporter 2014-08-06

A cartoon featured in a Chinese media outlet depicts the anti-monopoly
probe on Mercedes-Benz. (Photo/CFP)

Chrysler China announced price adjustments for car parts and accessories in China on Aug. 5, following similar moves from fellow carmakers Jaguar Land Rover, Audi and Mercedes-Benz, in response to the country's anti-monopoly investigation which has been underway since June.

BMW and Toyota are likely to follow suit.

There will be a 20% price reduction for 145 Chrysler parts and accessories with high warranty return rates, including front lights, rear mirrors, and starters. The price of the manufacturer's flagship Jeep Grand Cherokee SRT8 will drop 65,000 yuan (US$10,500), while the 5.7L Grand Cherokee will drop 45,000 yuan (US$7,300).

Jaguar Land Rover lowered the price of its three models by 200,000 yuan (US$32,500) and Audi will offer a 16%-38% price cut for parts and accessories. The price changes are effective Aug. 1 for both carmakers.

Mercedes-Benz China followed suit, announcing that it would reduce the price of component repair by 15% on Aug. 3, which is its second price cut within a month. This move failed to help the manufacturer dodge a probe, however. The day after it released the announcement, the National Development and Reform Commission turned up for a spot check at the carmaker's offices and took some of its senior staff and computers in to help with the investigation.

According to Xinhua, even with the generous price cuts, imported cars are still much more expensive than the same cars sold overseas. The Jaguar 5.8V8 Autobiography model, for example, costs 2,600,000 yuan (US$422,000) in China after the discount, which is nearly three times its UK price.

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