Continuing price cuts expected on domestic cars
12/4/2004 15:53
Mid and high-end sedans will see further price cuts of ten percent
every year over the next few years, and by 2006, prices are expected to be in
line with the international market, said Pan Zushun, general manager with the
Chinese import car trade center, the China Youth Post reported today.
Prices
of some domestic sedans (GM Regal, Volkswagen Passat, and Bora) are equal to the
after-tax imported car prices, while those of Mazda 6 and the new Honda Accord
were 10-15 percent higher than after-tax prices of imported cars, so there is
still room for price reductions, Pan pointed out.
Moreover, as domestic joint
venture car manufacturers introduce established sedan models from overseas, they
do not need to pay costs for fixed-asset investments, new product development
and research and development, Pan said.
The total costs of domestic sedans
are lower than imported ones, so that the average gross profits of domestic
sedans can be as high as 27 percent, ten percent higher than those for imports,
he added.
Wendy Zhang/ Shanghai Daily news
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