BMW and Mercedes-Benz said they will lower the prices of their automobiles in China, after the government announced it will reduce the country’s value-added tax (VAT) starting on April 1, reported Reuters.
BMW announced it would reduce prices for domestically produced and imported models, including the locally-made BMW 3 series and BMW 5 series, along with the BMW X5 and BMW 7 import models. The BMW 320Li M model will sell for a suggested retail price of RMB 339,800 ($50,620), a RMB 10,000 drop from its original price.
Mercedes-Benz announced similar price cuts on its range of cars effective immediately, in advance of the upcoming VAT drop. The cuts shown on the company’s social media page range from RMB 10,000 to RMB 40,000 on selected models.