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

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 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