Rachel Hou / Shanghai Daily news

The Dongfeng Peugeot Citroen Automobile Co.(DPCA), a Sino-French joint venture, yesterday announced price cuts of up to 20,000 yuan (US$2418) of its Peugeot 307 cars, depending on the model.

The company also promised to provide refunds for customers who had already bought the cars, today's Shanghai Morning Post reported.

Between Dec. 1 and the year end, nearly 7,000 purchasers will get back a total of 100 million yuan (US$12 million) from DPCA's franchisers. It is the first time that a domestic carmaker has given its car buyers refunds because of a price cut.