First Automobile Works (FAW) and Mazda have cut the price of Chinese-made 6 wagons by nearly 20%, as price competition heats up among global automakers in the fast-growing market.

According to Reuters, the 6 wagon, launched in September 2006, is now selling for 206,800 yuan ($US27,270), down from 246,800 yuan.

The news agency said car makers have been cutting prices, especially on older models, to attract buyers although China's vehicle market is growing strongly.

Volkswagen last week cut prices on the Passat Lingyu, a flagship model made by Shanghai Automotive, by up to 7% after last March reducing prices of several other locally made models by up to 11%.

Rival General Motors in January cut prices by as much as 10% on its Chevrolet Lova and Aveo economy cars, Reuters added.