Toyota and Honda are the two latest automakers to reduce prices of spare parts in China amid anti-monopoly investigations across the industry.
The world's largest automaker Toyota, along with Honda has joined Mercedes Benz, Audi and BMW in reducing spare parts prices in China. This move by the two major automakers in the industry follows an ongoing antitrust investigation that aims to protect consumer interest and maintain a healthy competitive order. The investigation is led by China's National Development and Reform Commission (NDRC), the country's top economic planning agency.
Toyota will bring its new pricing structure for some of its components into effect starting August 18, according to an official statement published on its website, last Thursday. The change will be carried out by Toyota's Chinese venture, GAC Toyota Motors. Similarly, Guangqi Honda Automobile, the car maker's joint venture with China's Guangzhou Automobile Group (GAC), will oversee the price reduction, Bloombergreports.
Last week, Daimler confirmed a price cut in Mercedes-Benz spare parts in China by an average 15 percent. The new prices will take effect starting September 1. Volkswagen's Audi brand dropped the prices of its spare parts in the world's most populous country earlier this month and Bayerische Motoren Werke (BMW) confirmed it will cut prices of more than 2,000 components by an average 20 percent from Monday, August 11.
The NDRC officials raided Mercedes-Benz offices in Shanghai last week, which was confirmed by Daimler a day later. A separate report last Thursday revealed NDRC's investigation led to the discovery of anti-competitive behavior by Audi and Chrysler. The commission will fine up to 10 percent of the car maker's annual sales revenue as soon as the investigation concludes and also seek 10 percent of the domestic income for the previous year as fine.
According to Bloomberg, the commission has completed investigations of 12 Japanese companies and the actions will be announced soon.
