Gasgoo.com (Shanghai April 11) - In order to tackle poor sales, Infiniti China has reduced the retail prices for some of its models, the National Business Daily reported. The largest of the price reductions, which have already been implemented, is over 70,000 yuan ($11,204).
According to officials from Infiniti China, the price reduction is the largest since the brand entered the Chinese market. Differences in currency exchange rates and decreasing sales growth rates in the luxury car market in China were cited as the major factor behind the price cuts. Infiniti hopes that the reductions will help it to "better accommodate to the [current] market environment."
Assistant Secretary of the China Passenger Car Association Cui Dongshu agrees that Infiniti's plans to reduce retail prices will be viewed favorably by consumers and help improve its brand image in the country. However, he emphasizes that relying on price cuts is not enough for a Japanese luxury car manufacturer to succeed in the Chinese market. He points out that cars with displacements of 3.5 L constitute the majority of models from Japanese luxury car manufacturers such as Infiniti and Acura. These vehicles are considerably expensive, carrying price tags above the 400,000 yuan ($64,023) mark. The Lexus CT is the only one with a starting price under 300,000 yuan ($48,017).
Statistics from the China Automobile Dealers Association reveal that there was an average of 15 vehicles at Infiniti dealerships in February, equal to an inventory index level of 5.2 points, far above the average index level of 3.34 points for import car dealerships.
