Text: | Print|

Japanese carmakers, BMW cut parts prices after anti-monopoly probe

2014-08-11 10:34 Global Times/Agencies Web Editor: Qin Dexing

Japan's Toyota, Honda and Nissan became the latest foreign carmakers to respond to China's anti-monopoly investigation into the auto industry, as the probe's impact extends beyond foreign luxury auto brands.

GAC Toyota Motor Co, Toyota's joint venture with China's GAC Group, and Guangqi Honda Automobile Co, Honda's venture with GAC, both said over the weekend that they would cut spare part prices due to the investigation.

Nissan's joint venture with China's Dongfeng Motor Group Co said it paid close attention to the regulator's suggestions and was actively studying improvements.

The moves came on the heels of price cuts by foreign luxury brands including Mercedes-Benz, Audi, Chrysler and Jaguar Land Rover over the past month, as China's price regulator, the National Development and Reform Commission (NDRC), steps up scrutiny of the industry.

On Friday, BMW joined its German rivals Audi and Mercedes-Benz in cutting prices of auto spare parts in China, where the government has complained about overcharging and launched probes to expose what it describes as anti-competitive behavior.

BMW, which has already cut prices for 3,300 spare parts in China by an average of 15 percent this year, will further reduce prices for over 2,000 components by 20 percent starting Monday -(August 11), the company said in an e-mailed statement on Friday.

The price cut is in "active response" to concerns expressed by the NDRC, also the country's top economic planner, BMW said.

China has also wielded its anti-monopoly law against other industries, including milk power and software. It targeted multinationals Mead Johnson Nutrition Co and Danone SA, which the regulator slapped with hefty fines, as well as US chip maker Qualcomm Inc, which faces the prospect of a $1 billion fine.

Industry experts say automakers have too much leverage over car dealers and auto part suppliers, enabling them to control prices, considered a violation of China's antitrust laws.

"Recently, NDRC's Price Supervision and Anti-Monopoly Bureau expressed great concerns over problems in the auto industry and the after-sales market," BMW said. "BMW has been paying close attention, and in response, is making the effort to bring down wholesale prices and promoting the flow of original parts."

BMW will expand the sales channels where independent repair shops can buy the carmaker's original parts, addressing criticism that carmakers don't allow components to be sold outside their authorized dealers.

Foreign luxury brands have frequently been criticized by the State media in China for inflating car and spare part prices and overcharging customers, and have been the focus of an anti-monopoly probe that started in late 2011.

German brands account for about 70 percent of China's luxury car market. China is BMW's biggest global market.

Comments (0)
Most popular in 24h
  Archived Content
Media partners:

Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.