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

The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Subaru has already announced that the all new Impreza will be out by fall this year. The 2018 model year not only gets a number of new upgrades, but it...
by - July 21, 2017
Do you ever wonder what challenges automakers have in selling limited edition cars? It’s different for each company but it can get stressful if the demand is high instead of...
by - July 21, 2017
Alpine is said to be developing an SUV which is believed to be the Porsche Macan’s closest rival. According to AutoExpress, the newly revived performance brand has been looking to...
by - July 20, 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