The tandem of Toyota Motor Corporation and Honda Motor Corporation joined Daimler AG’s Mercedes-Benz and Volkswagen AG’s Audi in cutting the prices of their spare parts in the middle of China’s antitrust probe in the auto industry.
The Japanese company, GAC Toyota Motor Co. which is on joint venture with Chinese company GAC Group, will reduce prices on selected spare parts starting on August 18, 2014. On the other end, Guangqi Honda Automobile Co., which is also on a joint venture with GAC, will also reduce selected spare parts beginning on September 1, 2013.
To date, China is largest automobile market in the world, but just whipped up investigation on the cost of foreign car manufacturers charges for spare parts and vehicles. The Chinese government started keeping an eye into the possible antitrust infringements in the automobile industry since 2011 as local media point the finger at manufacturers of increasing the prices and charging the consumers too much.
Meanwhile, Bayerische Motoren Werke AG is also bound to reduce the cost of their more than 2,000 spare parts by as much as 20% beginning on August 11, 2013.
Daimler also intends to reduce the prices of the spare parts of Mercedez Benz in China by as much as 15% next month. Audi stated last month that they will also reduce the replacement of its parts by 28% last August 1, 2014.
Antitrust officials based in Jiangsu province have started probing the Mercedes-Benz dealers in five cities. Few days ago Mercedes-Benz’s Shanghai office was raided by National Development and Reform Commission, NDRC.
The Chinese government will also soon mete out stern actions on both Chrysler Group LLC and Audi for taking part in the anomalies.