Mercedes-Benz to cut price of spare parts in China

Article by Christian A., on August 7, 2014

Mercedes-Benz will trim the prices of over 10,000 spare parts in China by an average of 15 percent starting September, in response to a move by the country to further scrutiny of business practices of foreign companies. According to Mercedes, it is voluntarily cutting prices on parts for all its models in China "in response to an anti-monopoly investigation" by the National Development and Reform Commission (NDRC) into the auto industry.

Marc-Oliver Nandy, executive vice president of aftersales for Mercedes in China, said in a statement that the price cut "would further lower the usage cost” for its customers and would improve the carmaker’s competitiveness in the after-sales market.

The carmaker recently said it would trim service charges and corresponding spare part prices. Audi has also decided to lower the prices of spare components and aftersales services in China while Jaguar Land Rover intends to trim prices on three car models.

Frank Biller, an analyst at LBBW, remarked that the car fleet in China is relatively young, so the spare-part business is smaller than in saturated markets. He noted that lower component prices will have limited impact on Daimler’s profits.

The pressure on carmakers is part of a wider bid by China to enforce anti-monopoly legislation that took effect in 2008. In July, regulators launched an anti-monopoly probe into Microsoft Corp.

Prior to that, regulators have launched probes against several industries like pharmaceuticals, milk-powder producers, jewelers and technology firms. Regulators have been imposed large fines on multinationals like Mead Johnson Nutrition and Danone. [source: Reuters]

If you liked the article, share on:

Comments

Recommended

BMW saw a potential oil leak on the new M760Li, prompting them to recall the said vehicle last April. Today, a little over two months after issuing the first recall,...
by - June 28, 2017
Without a doubt, the SUV segment is getting increasingly more saturated. This month alone, we were greeted with city-oriented SUVs from the Kia Stonic to the Hyundai Kona, and now...
by - June 27, 2017
The Swedish moose test is known to have victimized many in the past, including the Toyota Hilux that massively failed. So knowing that many cars from trusted and leading automakers...
by - June 27, 2017
All-new BMW X3 (G01) just made its debut! The updated model has a familiar design, and slightly increased dimensions compared to its successful predecessors. For more cabin space, the wheelbase...
by - June 27, 2017
Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries