Date
21 August 2017
Audi has cut its spare-parts prices in China as Beijing steps up scrutiny on foreign luxury car brands. Photo: Bloomberg
Audi has cut its spare-parts prices in China as Beijing steps up scrutiny on foreign luxury car brands. Photo: Bloomberg

Audi cuts China spare-parts prices amid govt scrutiny

Audi AG, a unit of German auto giant Volkswagen AG, said it will cut the prices it charges for spare parts in China, Wall Street Journal reported over the weekend.

“Localization measures and economies of scale allow Audi to adjust the prices for spare parts in China,” the carmaker was quoted as saying in a statement Saturday.

The company said it made the adjustments “proactively” to pass on the cost advantages to its customers. But the move comes after Beijing tightened its scrutiny on foreign luxury-carmakers. 

The anti-monopoly division of the National Development and Reform Commission, China’s top economic planning agency, recently expressed concerns about foreign auto makers’ pricing policies in China, the report noted.

“Audi and its joint venture FAW-Volkswagen support the efforts of the NDRC, to examine the pricing in the after-sales area in China,” the German firm said in its statement.

The new spare-parts prices will be effective from August 1. The statement didn’t give details, but according to China National Radio, the price cuts will range from 16-38 percent on parts such as gear boxes and braking systems.

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RC

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