South Korea’s Hyundai, which taken together with its affiliate Kia Motors counts as the world’s fifth largest automaker, has announced its decision to lower the price of two sport-utility vehicle (SUV) models in China.
The automaker announced on Tuesday the two SUV models will have more affordable prices by up to 11.8 percent, with Hyundai being the latest company in a long list of carmakers to cut prices as they cope with the unexpected drop in deliveries across the world’s largest auto market. The bigger Santa Fe model will receive price cuts of as much as 30,000 yuan ($4,832) and the more popular ix35 SUV would have the price lowered by 20,000 yuan, in a bid to lift competitiveness in the country, where it aims to introduce the next generation Tucson SUV the next month. The South Korean company announced its second quarter sales were 14 percent lower in China than during the same period last year and the automaker has vowed to offer more incentives to better compete on the shifting Chinese market. It also aims to better position itself to compete with local Chinese manufacturers, which have been offering a wide variety of cheap SUVs.
The price cuts have been used by other rivals such as General Motors, Ford or Volkswagen, with Chinese auto sales now forecasted to reach a 3 percent increase over the full year, more than 50 percent slower than the pace seen last year. The economy has been growing at the slowest pace in more than two decades and consumer sentiment has been recently impacted negatively by the troubles across the Chinese stock market.