Daimler AG is planning to cut Mercedes-Benz parts prices in China by around 15% starting next month as a government investigation into whether automakers are manipulating prices is taking place.
The reductions include 10.000 products for all Mercedes-Benz models with a 29% decrease on windshields. The Germany-based manufacturer stated yesterday that this will improve the car producer’s competitiveness in after-sales services.
This way Daimler joined Volkswagen AG’s Audi brand in decreasing the cost for spare components and after-sales services as China increases scrutiny of foreign companies’ business practices. Daimler stated that from September 1st, Mercedes will “take the initiative to adjust the prices of some spare parts. The latest move by Mercedes-Benz in the area of after-sales will provide a more attractive after-sales service experience for Chinese consumers.”
Mercedes is already enabling customers to save as much as 20% through their program by getting their cars serviced. BMW is also in the talks with the Chinese regulatory body to reduce prices for components, having already cut what it charged Chinese customers for spare parts in the first half of 2014. China is BMW’s biggest national market as it generates around 20% of the car producer’s annual revenue. China Daily reported at the end of July that some carmakers have lowered their prices after they were contacted by Chinese officials, yet they remain unnamed.