Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
BMW, Mercedes-Benz lower prices in China after VAT drop
Reuters | 2019/3/19

SHANGHAI -- BMW AG and Mercedes-Benz said they will lower prices in China after the government announced it will reduce the country's value-added tax starting on April 1.

The German automakers each published posts on Chinese social media announcing immediate price cuts for several models. The discounts come as China endures a shrinking market for automobiles as the economy slows.

BMW said it would reduce prices for both domestically produced and imported models, including the locally-made BMW 3 series and BMW 5 series, along with the BMW X5 and BMW 7 import models. The BMW 320Li M model will sell for a suggested retail price of 339,800 yuan ($50,620), a drop of 10,000 yuan from its original price.

The reductions mark the company's "active response to the national VAT adjustment notice," BMW said in a post on WeChat, China's popular messaging app.

Daimler AG-owned Mercedes-Benz announced similar price cuts on a range of vehicles, also effective immediately, in advance of the upcoming VAT drop. The cuts shown on its social media page range from 10,000 yuan to 40,000 yuan on select models.

On March 5, Chinese Premier Li Keqiang announced that China will cut the VAT across a range of industries, with the tax set to drop in the manufacturing sector from 16 percent to 13 percent and in the transportation sector from 10 percent to 9 percent.

The carmakers' cuts come as China's automobile industry faces a major slowdown. In 2018, China's car market shrank 5.8 percent, marking its first contraction in over two decades.

Policymakers have introduced a range of policies to stimulate demand for cars. In January, China's National Development and Reform Commission said it would loosen restrictions on the second-hand car market and provide subsidies to boost purchases in rural areas.

Related Stories
  • Mercedes goes boxy with new baby crossover
  •     --Published:2019/16/4
     
  • Daimler, BMW to limit scope of venture to affordable China EV, report says
  •     --Published:2019/5/4
     
  • Europe's automakers scramble to protect profits in China
  •     --Published:2019/2/4
     
  • BMW, Audi gain; Mercedes Feb. sales dip
  •     --Published:2019/15/3
     
  • BMW plan to export EVs from China on hold amid trade talks
  •     --Published:2019/8/3
     
  • BMW sustains double-digit sales growth; deliveries lag Mercedes, Audi
  •     --Published:2019/19/2
     
  • Mercedes-Benz outsells Audi on sedan demand
  •     --Published:2019/12/2
     
  • Mercedes-Benz to deepen ties with Chinese auto suppliers
  •     --Published:2019/24/1
     
  • BMW's December China sales growth outpaces Audi, Mercedes-Benz
  •     --Published:2019/15/1
     
  • BMW maintains double-digit growth behind locally built X3
  •     --Published:2018/21/12
     
  • BMW launches ride-hailing in Chengdu
  •     --Published:2018/18/12
     
  • BMW to offer ride-hailing services
  •     --Published:2018/23/11
     
  • BMW's sales advance but trail luxury rivals through first 10 months
  •     --Published:2018/20/11
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291