CHINA: Another car maker cuts prices
FAW Car Co., a unit of car group FAW Group Corp., said Friday that it had cut the price of Red Flag brand sedans by up to 50,000 yuan from June, Dow Jones reported.
The move came after another FAW unit, Tianjin FAW Xiali Automobile Co. cut the prices of three models by up to CNY10,000, the news agency noted.
Other Chinese car makers have recently cut prices and the report said the latest reductions are likely to ignite a string of price cuts by other car makers because China's new car market is intensively competitive.
According to Down Jones, FAW Car said the price reductions would range from CNY10,000 to CNY50,000 and would help "expand its market share and readjust its product structure."
FAW Xiali cited the same reasons for its price cuts, Dow Jones noted.
The news agency said FAW Group has joint ventures with Toyota and Volkswagen, producing cars under those brands, while its own Red Flag and Xiali brands are among the best known in China.