Jane Chen /Shanghai Daily news

Tianjin FAW Xiali Automobile Co Ltd announced it is cutting prices on its main Charade models as of today, establishing a  record low price for hatchback cars in the country, the Sina.com reported.
The deepest is a 20-percent cut, equivalent to 10,000 yuan (US$1,209), for the TJ7101AUPT model, which, now at 37,800 yuan, has become the cheapest hatchback economy car in the domestic market.
The price of a TJ7101AU has also been slashed 10,000 yuan, or 20 percent, to 39,800 yuan.
The price cuts have seemed unexpected because Xiali has been reporting satisfactory sales in the past three months, with sales up 20-plus percent from 8,999 units in August to 12,980 units of last month, according to Sina.com.
Industry insiders explained the move as part of the automaker's strategy to promote its product as a widely accepted vehicle for Chinese consumers.
The company has two approaches to achieve their goal. It plans to improve brand image and product quality, developing models more effective for the domestic market, and it is adopting a new pricing system, they noted.  Products covered in this price campaign are Xiali's best selling models.
Upbeat about the low pricing policy, analysts expected the price cuts would trigger a new round of price competition in China's already stiff compact car market.