China: amid monopoly probe, Audi cuts spare parts prices image

The Chinese anti-monopoly watchdog recently expressed concern over some foreign brands as it gathered evidence in an ongoing investigation centered on the overall spare parts auto industry.

Last week, the local unit of Mercedes-Benz was the center of rumors regarding the ongoing probe, with executives rushing to downplay concerns over the brand’s implication in the regulators’ price fixing investigation. The German automaker also moved to cut down all its prices for locally sold parts. The National Development and Reform Commission (NDRC), China’s state planner, started an investigation on reports that Chinese customers were charged more on various items and spare parts.

“As a premium market leader Audi has made the price adjustments proactively,” said Audi in a statement. “Audi and its joint venture FAW-Volkswagen support the efforts of the NDRC to examine the pricing in the after-sales area in China.”

Daimler AG’s premium unit moved to reduce service charges and spare-part prices in China by around 20%, while Audi – without providing specifics – said the customer “cost advantages” would now allow reductions of around 30% for certain models.

Back in December 2013, China’s state television released a report accusing many foreign automakers of overcharging Chinese automakers, singling out especially Audi, Subaru and Jaguar Land Rover.

Via Reuters