SAIC Volkswagen—a joint venture between SAIC Motor and VW—offered sales incentives of up to RMB 60,000 on nine sport utility vehicle models in China in August.
SAIC Volkswagen’s price cuts follow Tesla’s decision to lower prices on select Model Y vehicles this month. Tesla and SAIC Volkswagen’s decreasing prices are fanning the flames of China’s price war—again.
SAIC Volkswagen cut its prices to increase demand. The company’s strategy is working. Nikkei Asia observed that one SAIC Volkswagen dealership in Shanghai experienced a strong stream of customers visiting to check out vehicles in August.
“Customer traffic has increased because we cut prices. Sales have been strong, too,” commented one sales associate at a SAIC Volkswagen dealership.
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