Audi Cuts Prices Of Spare Parts In China

(RTTNews) - European carmaker Volkswagen AG's (VKW.L, VLKAF.PK, VOW.BE) luxury brand Audi (AUDVF.PK) announced price cuts of up to 38 percent in China, its largest market.

Audi said due to localization measures and economies of scale, it can adjust the prices for spare parts in the world's second largest economy. These cost advantages are passed on to the customers.

Price cuts range from 16 to 38 percent for products including some engines, gearboxes and car-body parts. The new prices will be effective August 1.

The decision comes amid increased scrutiny of foreign luxury-auto makers by the Chinese government.

Friday, Tata Motors Co.'s Jaguar Land Rover Plc. announced it would cut prices for three models. This came after a probe by the pricing and antimonopoly division of the National Development and Reform Commission, which is China's premier economic-planning agency.