Daimler AG confirmed a price cut in Mercedes Benz spare parts in China by an average 15 percent starting next month.
Daimler AG, one of the largest automotive corporations, revealed its intentions to reduce prices of spare parts for its Mercedes Benz cars in China. The revision of the spare parts prices is in line with an investigation led by China's National Development and Reform Commission for anticompetitive practices across the country's auto industry. With this, Daimler has joined Volkswagen's Audi that has also lowered the prices of its spare parts in China.
The new change, which will take effect starting September 1, 2014, will lower the average prices of spare parts by 15 percent. The price adjustments will be applied to more than 10,000 components used in all Mercedes Benz cars. According to a report by Bloomberg, certain parts like the windshields will see discounts as high as 29 percent.
The effective price reductions by leading luxury car makers in China will improve the after sales service.
Audi is offering up to 38 percent price cut in spare parts starting August 1. A similar move is being carried out by Tata Motors, which is expected to reduce prices for three of its models of the Jaguar Land Rover brand.
China is an extremely crucial market for luxury automobile companies for the country's increasing demand for SUVs and sedans. The price reduction comes in response to the investigation by the pricing and antimonopoly division of National Development and Reform Commission, the top economic planning agency in China. The commission is also investigating business practices in Bayerische Motoren Werke (BMW) AG and other Japanese car makers to see if the prices are artificially boosted, Market Watch reports.
While other car makers have spelled their next moves, BMW, which is the world's best selling luxury car maker, is yet to make an official statement about any price changes.
