On Saturday, the 16th of March 2019, German luxury carmaker BMW and Mercedes-Benz had issued statements, saying that they would be reducing their prices in China. Fresh news of cutting both BMW and Mercedes-Benz prices came forth, after the Chinese government had announced that they would be reducing value added tax from April 1st as an attempt to fuel up the nation’s slowing economy, which recently posted a multi-decade low industrial production data and had been at the verge of a contraction amid a gruesome trade conflict with United States.
Following the news of dropping Value Added Tax (VAT) in China, both German automakers had published posts on Chinese social media, revealing the news of immediate price cut for several models.
As beforementioned, the latest discount over auto industry came as China had been bracing a contracting market amid sluggish economy. According to a post of BMW on WeChat, a popular Chinese social media platform, BMW said that they would be reducing prices for imported and domestically manufactured models including the imported BMW X5 and BMW 7, alongside domestically produced BMW series 3 and series 5.
Meanwhile, German Daimler AG owned Mercedes-Benz had also announced a price cut on multiple models, unlike BMW which went immediately effective.