Price war expanding to luxury cars
3/8/2004 11:52
Wendy Zhang/ Shanghai Daily news
With six to nine
percent in price cuts sparked on Audi A4 series, price war has expanded to
high-end sedans, the Shanghai Securities reported today.
Prices of most Audi
A4 series were cut by up to 31,000 yuan (US$3,735) to 350,000-500,000 yuan, with
the preferential prices available until the end of October.
According to the
China Association of Automotive Manufacturers (CAAM), monthly car price
reductions hit 5.84 percent in June, 19.27 percent in May and 2.72 percent in
April.
As of May this year, Chinese car manufacturers jointly slashed prices
in order to liquidate their growing inventories. Shanghai GM cut prices of ten
Buick models by an average of eight percent. In June, Shanghai Volkswagen
slashed prices of 25 models by 7.63 percent on average. VW's another join
venture company in Changchun - First Automotive Works-Volkswagen Automotive Co
Ltd - announced price cuts of 6.17 percent on 14
sedans.
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