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

Not so long ago, the 2018 Genesis G80 Sport made its debut at the 2016 LA Auto Show. But at that time, it did not have a price yet. And...
by - April 23, 2017
It seems like an increase in price has become a trend for automotive companies lately. Genesis isn’t alone when it comes to this. Subaru had just announced that the 2018...
by - April 23, 2017
Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 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