FAW-VW has announced price cuts of 10,000 yuan and 19,000 yuan (US$1,463 and US$2,779) on its mainstream models including Bora, Golf, Sagitar, and Magotan to spur demand.
Chang'an Ford Mazda Automobile Co Ltd announced last Wednesday to slice the price of its Mondeo mid-to high-class sedan by up to 20,000 yuan, or 12 percent.
Guangzhou Honda's Accord and FAW Toyota's Camry are also reported to be sold with a discount of 18,000 to 23,000 yuan. Other models that are rumored to have discounts include Mazda6, Reiz, Lacrosse, Passat and Sebring.
Most cars with price discounts are seen in the mid- to high-end auto market where profit is supposed to be higher than economic cars and automakers hopes to achieve their annual sales targets by joining the price war.
However, industry sources fear that automakers will have to sacrifice their profit margins significantly in order to do so, a potentially precarious situation given the rising costs of both raw materials and manpower.
