Mercedes-Benz cuts prices by 10% in China to support dealers facing losses and excess inventory in a competitive market, according to Reuters.
Mercedes-Benz has reduced suggested retail prices for some models in China by 10 percent, as dealers face mounting losses and excess inventory in the world's most competitive auto market, reported Reuters.
The All-China Federation of Industry and Commerce's auto dealers chamber confirmed the adjustment, noting it had previously sent three letters to the German automaker regarding delayed rebates and excessive stock. The chamber called the move pragmatic, stating it would help free up liquidity, but added that it did not fully resolve concerns about Mercedes' wider business policy.
The cuts highlight the growing crisis for luxury carmakers in China, where a fierce price war and changing sales models are undermining the profitability of dealership networks that once anchored foreign brands' dominance.
