Shanghai, October 9 (Gasgoo.com) FAW Car Co has announced that it will cut the price of its luxury Hongqi (Red Flag) brand HQ3 sedans by 50,000 yuan ($7,340) - 167,000 yuan as a move to boost sales, Chinese auto website cheshi.com reported.
The company has changed the model’s Chinese name from Hongqi HQ3 to Shengshi (“Days of Prosperity”) and said that in the future the car will target private car segment instead of high end business and government segments, according to the report, citing sources from the company.
The HQ3 price slash this time is of the largest scale the Chinese-built cars ever had. The price of the government-use models has decreased from 299,800 yuan to 249,800 yuan, the commemorative model from 399,800 yuan to 349,800 yuan, and the premium model from 566,800 yuan to 399,800 yuan.
Experts say that for most Chinese people the "Red Flag" car is a glorious image "vehicle" for government officials for historical reasons. It has become symbols of political power and feature status-confirming attributes, so citizens feel it just not fit for them to buy such a car.
Sales of Hongqi cars continue to dwindle in the first half of this year, with only 788 units sold, all from inventories. Earlier the company decided to integrate of Hongqi's sales network into the Besturn's in an effort to save cost.
In August FAW Car is talking about plans to develop a new lineup of its own-brand models for sales growth by partnering with Austrian auto design firm Magna Steyr, who will be engaged in designing the B-Class, D-Class, E-Class HQ sedans and other HQ vehicle models.