BMW may have seen a 26 percent jump in sales last quarter but the carmaker is cutting prices of more than 2,000 car parts in China. No thanks to the ongoing antitrust investigation in the country where a number of big tech companies are being reviewed for suspected violation of the anti-monopoly law.
BMW isn't the only one in the automotive industry being questioned. Audi and Mercedes-Benz groups also reducing prices of car spare parts in China amid the investigation.
Starting 11th of August, BMW will slash off prices of about 20 percent of all 2,000 spare parts. BMW's auto dealers will also be setting up more outlets in big cities like Shanghai and Beijing to sell original parts. This is BMW's way to expand the sales channels where repair shops can buy the original parts.
This isn't the first time Germany luxury car brand BMW is cutting off prices as it already did for 3,300 parts earlier this year. This new price cut is BMW's response to the National Development and Reform Commission's questions about overpricing in China -- the biggest global market of BMW.
Other companies being investigated in China include Microsoft, Mercedes-Benz, Audi, Danone SA and Mead Johnson Nutrition Co. The last two firms have already been slapped with huge fines. Fiat Spa's Chrysler and Volkswagen AG's Audi will be fined soon by the NRDC.
Because of the investigations, other car manufactures like Jaguar Land Rover and Chrysler are also cutting prices in China.
"Recently, NDRC's Price Supervision and Anti-Monopoly Bureau expressed great concerns over problems in the auto industry and the after-sales market. BMW has been paying close attention, and in response, is making the effort to bring down wholesale prices and promoting the flow of original parts," BMW said.
With the anti-monopoly law, the government of China is targeting big foreign companies that are in violation of the said Chinese law. This isn't a new thing as anti-monopoly probe and investigation started way back in 2011. These companies' overcharging is described as an anti-competitive behavior. Hopefully, BMW's plan to slash off prices of spare parts would put an end to the probe or at least answer to NRDC's complaint.
