Foreign automakers accused over prices
Print Edition
China’s state broadcaster has accused some foreign carmakers, including Land Rover, Subaru and Audi, of profiteering and called for a revision of auto market regulations.
A common rear end accident costs the owner of an imported Range Rover 100,000 yuan (US$16,313) to fix because of expensive parts on which the manufacturer has a monopoly, while the car costs a little over 1 million yuan, China Central Television said.
Likewise, owners of imported Subaru and Audi models also have to buy parts at a high price, according to CCTV’s “Half-Hour Economy” program.
Industry insiders said duties on imported car parts, usually about 29 percent, do not make a big contribution to the prices.
The program blames a 2005 guideline on car sales management for excessive prices. The regulation allows foreign carmakers to set up their own franchisees to handle sales, after-sales service and the supply of spare parts.
The program urged the authorities to modify the law and correct what it said was unfairness.
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