Japanese automakers have started cutting retail prices of their vehicles in China in line with a recent drop in demand in a market that had expanded vigorously until this year, a Japanese business daily reported on Saturday.
Nihon Keizai Shimbun (Nikkei) said Nissan Motor Co had cut the suggested retail prices for its Sunny series by an average of 8 percent to 9 percent to 153,800 to 175,000 yuan. It also reduced retail prices for its Bluebird series by 5 percent to 7 percent to 196,800 to 233,800 yuan.
Suzuki Motor Corp has slashed the suggested retail prices for its mainstay Alto mini-vehicle series by 11 percent to 13 percent, it said.
"Until recently, Japanese carmakers remained cautious about lowering prices despite the fact that their US and European rivals have been making progressively deeper cuts since last year," Nikkei said.
Vehicle sales in China started decelerating this year, with month-on-month sales dropping for three consecutive months since April, Nikkei said.
China's tighter economic policies were to blame for the market contraction, it said.
After the Chinese government's orders for banks to toughen their screenings of loan applications, car loans have become less accessible to general consumers, it added.