Some automotive giants have slashed the prices of models sold in China, after the country officially reduced its value-added tax (VAT) on April 1.
Ford Motor (China) Ltd. announced on the same date that it would immediately reduce the recommended retail prices of all its imported models in China. The company made the move in response to China’s VAT adjustment and suspension of additional tariffs on US vehicles and auto parts.
Ford cut the prices of all its imported models by up to 34,000 yuan, to cater to consumers’ diversified needs.
Volkswagen Group’s announcement came the same day, further cutting the recommended retail price of all its commercial vehicle models on sale in China, including Multivan and Caravelle.
The group’s recommended retail prices took effect on the same day, creating savings on a Multivan of up to 13,300 yuan.
FAW Toyota Motor Sales Co., Ltd., a Sino-Japanese joint venture, also reduced the price of parts by up to 11,000 yuan.
GAC Toyota Motor lowered the price of its popular models and spare parts on the same day, covering 50 models across its six major product ranges and over 20,000 spare parts.