Xiali Carmaker Announces Sharp Price Cuts

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Last updated at: (Beijing Time) Saturday, January 12, 2002

Xiali Carmaker Announces Sharp Price Cuts

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Tianjin Automobile Industry Corp. announced Friday it has decided to cut prices of its Xiali economy cars in an attempt to keep its share of the market in a new round of price reductions between Chinese carmakers.

Sales of Xiali cars were suspended for one day on Friday for the price adjustment. Customers can buy Xiali cars at much lower prices starting Saturday.

The price for the Xiali 2000 Century Square model was slashed by 20 percent, from nearly 120,000 yuan down to 97,000 yuan, and ahatchback model dropped from 48,900 yuan to 39,800 yuan, the lowest price offered for such models on China market, according tosources.

China's WTO entry has caused sharp tariff reduction on importedcars since the beginning of this year. Prices for imported cars have plunged, compelling domestic carmakers to cut their own prices for a competitive edge.

Major car manufacturers, like Mazda in south China's island province of Hainan and the First Automobile Works in northeast China, have already reduced automobile prices.(1 US dollar = 8.27 yuan.)

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