In recent years, China has gradually developed into the world's most important automobile market, which directly helped the Volkswagen, Mercedes-Benz, Jaguar Land Rover and other car companies to achieve substantial growth in the Chinese market. However, a few days ago, according to German media reports, China’s anti-monopoly sector began to exert pressure, and foreign car companies began to cut prices. The details are as follows:
Although Chinese cars are booming, foreign manufacturers such as Audi, BMW and Daimler have always dominated the market. On July 26th, Audi announced that it will actively reduce the price of original spare parts for domestic models from August 1st, and the reduction ratio may reach 38%. “As the leader in the high-end car market, Audi offered to adjust the price,†the company said. “Audi and its joint venture, FAW-Volkswagen, support the National Development and Reform Commission to check the pricing issues in China's after-sales service sector and will actively cooperate.†In addition, Audi The ratio of the sum of component prices to the sales price of the vehicle will also decrease. For example, the Audi A6L's “zero ratio†will be reduced from 411% to 291%.
Jaguar Land Rover also announced that it will lower the price of three models from August 1. The National Development and Reform Commission's anti-monopoly investigation was supported by the two companies, and the National Development and Reform Commission also called on other manufacturers to respond positively.
This move by the National Development and Reform Commission surprised some industry analysts. Analyst Max Warburton said: "In the past two years, there have been harbingers of investigations, but we did not expect a direct price cut. This will definitely affect the profits of companies such as Audi and Jaguar Land Rover." According to Warburton estimates, In the international automotive market, the share of the spare parts business accounts for about 10% of total sales, and its sales can bring automakers up to 40%.
Warburton believes that other automakers seem to be acting under the pressure of monopoly. Earlier, there have been reports in the media that Mercedes-Benz has adjusted the price of maintenance services in early July. Another spokesman for the luxury car market in China, a spokesman for BMW, said that BMW has not been investigated for “violation of China’s anti-monopoly law†for the time being; it said: “We have been closely following and strictly abiding by the Chinese government. Laws and regulations."
Under the pressure of the National Development and Reform Commission, automakers in Germany and other countries may face the problem of losing market share. However, this also gives opportunities to local Chinese manufacturers. According to statistics, the sales volume of Chinese domestic auto brands in the first four months of 2014 decreased by about 5% compared with last year, and the sales of Chinese brands accounted for only 22% of the total sales in China.
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