Shanghai Volkswagen (SVW) is the latest Chinese maker to significantly reduce its car prices in order to win business amid slower demand.
The JV firm has slashed prices by up to nearly 12%.
The new Touran multi-purpose vehicle, with an engine size of 2.0 litres, is now priced at between 149,800 to 171,800 yuan ($21,920-$25,130)), down from 169,800 to 189,800 yuan previously, the firm said in a statement.
The prices of its Polo series of compact cars have been slashed to as low as between 85,800 and 122,600 yuan, from between 90,800 to 133,000 yuan previously, it said.
Growth in the Chinese vehicle market has slowed in line with a slowing of economic growth. However, the market was stimulated by price reductions and purchase tax reductions that coincided with the new lunar year in January.
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By GlobalDataHowever, local analysts say that the market pick up was temporary and sluggish demand alongside overcapacity have reasserted themselves, prompting further price cuts in February.