CHINA: More new car price cuts announced
There are signs of another new car price war in China. Less than a week after Brilliance China announced price cuts on superseded sedan models still in stock, Dow Jones has reported that Tianjin FAW Xiali Automobile Co., the joint-venture partner of Toyota Motor, has cut prices on three models to boost market share.
The reductions on the Vizi, Echo, and Xiali 2000 sedans will range from 5,000 yuan to CNY10,000, FAW Xiali reportedly said, according to Dow Jones, in an announcement over the weekend.
"The price cuts this time will help the company expand its market share...but they aren't expected to affect the full-year earnings," the news agency quoted FAW Xiali as saying, adding that the changes took effect on Sunday.
Dow Jones added that the China Daily on Monday said Xiali also cut the price of its old Xiali models by CNY5,700 on May 23, pricing its various models between CNY36,800 and CNY119,800.
According to the news agency, Xiali sold 36,000 cars in the first four months, up 11% on year.
Dow Jones noted that FAW Xiali was one of the first companies to cut prices early last year and this move was followed by many other car companies. This reduction could spur yet another round of cuts, the news agency suggested.