Brand cars have lowered their prices in response to antitrust investigations

Jaguar Land Rover China announced that it will implement a price reduction of up to 200,000 yuan on three models of its Jaguar and Land Rover brands from August 1st, in response to the National Development and Reform Commission price supervision and anti-monopoly bureau for the automotive industry Antitrust investigation conducted.

Just the day after Jaguar Land Rover China announced the price reduction, on July 26th, FAW-VW Audi officially announced that it would take the initiative to lower the original spare parts price of domestic models from August 1st, taking the Audi A6L as an example. The "zero consolidation ratio" will be reduced from 411% to 291%.

There are three Jaguar Land Rover price models, namely Range Rover Range Rover 5.0 V8, Land Rover Range Rover Sport version 5.0 V8 and Jaguar F-TYPE convertible models. Since August 1, 2014, the manufacturer's guide price for the above models has been reduced by an average of RMB 200,000.

According to information received by the Beijing Morning Post reporter, Jaguar Land Rover is not the object of national antitrust investigations, but Jaguar Land Rover has the fastest response. Proximity sources said that "Jaguar Land Rover's attitude is sincere." It is understood that Jaguar Land Rover’s practice of lowering 200,000 yuan is bound to trigger the chain reaction of other luxury brands. The multinational brands that belong to large displacement and luxury brands will follow suit, such as Porsche.

However, the price cut by Jaguar Land Rover may not have substantial significance for the market. In the absence of price cuts, Land Rover’s various models still have a phenomenon that generally increases the price by 50,000 yuan to 100,000 yuan. Beijing Morning Post reporter learned from Jaguar Land Rover's largest distributor Hui Tong Luhua in Beijing that under normal circumstances, the Range Rover Range Rover from the booking to the delivery of the cycle is still about two months. Cars reserved for owners in June are still on the way to sea transportation.

Compared to Jaguar Land Rover’s downward revision of the model’s sales price, Audi seems more realistic. FAW-VW Audi's original spare parts prices will be implemented starting on August 1, involving its own domestic models. For example, the price of the comfortable 2.0 litre TFSI engine of the Audi A6LTFSI has fallen by 22%, the multitronic stepless/manual integrated transmission has been reduced by 38%, the body assembly has been reduced by 16%, and the ABS unit has been reduced by 25%. At the same time, FAW-VW Audi stated that it will continue to improve the original spare parts pricing system in accordance with market conditions.

The Beijing Morning Post reporter learned from relevant sources that since 2011, the National Anti-Monopoly Bureau of the National Development and Reform Commission has launched an anti-monopoly investigation of the automotive industry. Currently, all high- and low-end car companies are within the scope of the survey. It is understood that after more than two years of detailed investigation, the national anti-monopoly department will issue a fine to some of the vehicle manufacturers and parts manufacturers in accordance with the relevant provisions of the anti-monopoly law.