Toyota and Honda joint ventures are cutting prices of spare parts in China

Article by Christian A., on August 12, 2014

The Chinese joint ventures of Japanese carmakers Toyota Motor Corp. and Honda Motor Co. are also cutting the prices of spare parts while authorities are looking into monopolistic practices in the auto industry. According to statement on its Web site, GAC Toyota Motor Co. -- a venture between Toyota and GAC Group -- will trim prices on some parts starting Aug. 18.

Guangqi Honda Automobile Co. – a venture between Honda and GAC -- will cut prices of some parts from Sept. 1. China is stepping up its efforts to determine how much foreign carmakers charge for vehicles and spare parts.

China commenced it probe into possible antitrust violations in the auto industry at the end of 2011, with state media accusing carmakers of inflating prices and overcharging consumers. BMW, Daimler and Audi have announced similar moves.

BMW will trim prices on over 2,000 components by an average of 20 percent starting Aug. 11 while Daimler will cut spare-part prices for its Mercedes-Benz units by an average of 15 percent starting September.

Audi's joint venture in the country announced in late July that it would cut replacement costs of its parts by up to 38 percent on Aug. 1. Antitrust officials in Jiangsu have commenced probes of Mercedes-Benz dealers in five cities including Suzhou and Wuxi.

Local officials of the National Development and Reform Commission recently raided the Shanghai office of Mercedes-Benz. NDRC spokesman Li Pumin disclosed that the government will soon punish Chrysler Group and Audi for engaging in monopolistic actions.

He remarked that the NDRC has already completed a probe into 12 Japanese firms and will soon disclose the actions it will take. [source: automotive news - sub. required]

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
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
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