BMW is cutting prices of over 2,000 spare parts in China

Article by Andrew Christian, on August 11, 2014

BMW AG is also trimming the prices of spare parts in China as an anti-monopoly probe shocks the auto industry in the country. BMW joins fellow German luxury carmakers Mercedes-Benz and Audi brand in doing so. The prices of over 2,000 components will be trimmed by an average of 20 percent starting Aug. 11, BMW said in an e-mailed statement to Bloomberg.

The carmaker said its authorized dealerships in the country will establish more outlets in large cities like Beijing and Shanghai that will sell original parts to independent workshops.

China is ramping up its current probe into how much foreign carmakers charge for vehicles and spare parts and into whether they are committing antitrust violations. The government commenced its scrutiny into monopoly practices in the auto industry at the end of 2011.

BMW said in the statement that the Price Supervision and Anti-Monopoly Bureau of the National Development and Reform Commission recently expressed “great concerns” over existing issues in the auto industry and after-sales service sector. It said that it has been “paying close attention” is cutting wholesale prices and promoting the flow of original parts.

BMW already trimmed the prices in the first seven months of 2014 of over 3,300 pieces of original parts by an average of 15 percent. Around 108 products had their prices trimmed by between 20 percent and 50 percent, according to BMW.

NDRC spokesman Li Pumin said that antitrust officials in Jiangsu have commence probes into Mercedes-Benz dealers in five cities including Suzhou and Wuxi, while its officials in Shanghai recently raided Mercedes-Benz’s office in the city.

He disclosed that China will hand out punishments to the Chrysler Group and Audi for engaging in monopolistic actions. Li said that the NDRC is conducting the probe to protect the competitive order of the auto industry as well as to safeguard consumer interests, Li said at this week’s briefing.

He said that the NDRC has wrapped up its probe into 12 Japanese companies and will soon disclosed the actions to be taken. [source: Bloomberg]

Topics: bmw, china

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016
Have you ever heard of the name Kris Singh? If you’re passionate about cars, you’ve probably come across this name at some point while you scour reports about the latest...
by - September 2, 2016