Photo: BMW
The slowdown in the pace of growth and the Chinese government’s efforts to stem the number of cars in the most congested cities of the nation have resulted in declining luxury car sales. This in turn has seen dealers offering ever greater discounts to keep the sales momentum.
In Beijing, BMW is offering as much as 19 percent off certain cars, like the 3-Series. Mercedes meanwhile has slashed the C-Class by as much as 20 percent in the case of the Elegance model, according to Automotive News.
"We're in a cycle of dropping prices," said Scott Laprise, a Beijing-based analyst at CLSA Asia Pacific Markets. According to J.D. Power, demand for luxury cars has increased 29 percent this year, down from the 48 percent in 2010.
"Dealers are worried about sales slowing and are cutting selectively in the luxury segment. They see where the overall market is going. They want to be preventive and keep their sales going," Laprise adds.
"We're in a cycle of dropping prices," said Scott Laprise, a Beijing-based analyst at CLSA Asia Pacific Markets. According to J.D. Power, demand for luxury cars has increased 29 percent this year, down from the 48 percent in 2010.
"Dealers are worried about sales slowing and are cutting selectively in the luxury segment. They see where the overall market is going. They want to be preventive and keep their sales going," Laprise adds.
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