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Shanghai VW slashes car parts
(Xinhua)
Updated: 2004-09-30 10:03

Shanghai Volkswagen Corporation declared Wednesday a price-cutting plan for its car parts aiming to increase its market share in China.

According to the plan, hundreds of components for Passat and Polo, its two dominant cars in China, will get large price cuts of between 25 and 80 percent starting Oct. 1.

The price adjustment "will offer more preferential prices and lower the maintenance costs for consumers" as the corporation has formed "batch-produced ability for components" and established an "after-sale service network" around the country, said a company spokesman.

The spokesman said insurance premiums and purchasing and usage costs will also decline. As a result, the two cars will become more competitive and help consumers regain confidence in the car market.

China's car market is price-sensitive, but experts noted that price cuts only have short-term effects. In the long run, other factors will win out.

Shanghai Volkswagen is the top car sales company in China.

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