A customer consults with a salesperson in Shanghai
Mercedes-Benz, BMW, Jaguar Land Rover, Lincoln and other foreign carmakers announced price cuts for their models in response to the upcoming value-added tax cuts. The VAT rate in China for manufacturing sectors will be cut to 13% from 16% starting April 1st.
Employees work at the production line of the Chery Jaguar Land Rover plant in Changshu
Last Friday, Mercedes-Benz took the lead in reducing prices for its models, with the maximum drop of 64,000 yuan ($9,500) for Mercedes-AMG starting from March 16.
Imported Mercedes-Benz cars at Tianjin Port
BMW, Volvo, Lincoln and Jaguar Land Rover then joined the move, with price of Range Rover, a premium SUV model of Land Rover, cut by up to 85,000 yuan.