Gasgoo.com (Shanghai July 29) - Jaguar Land Rover has announced that it will be lowering the prices of three of its models, the Beijing Evening Post reported today. The announcement came on the heels of anti-monopoly investigation headed by the National Development and Reform Commission.
The three models include the Range Rover Long Wheelbase version, Range Rover Sport Long Wheelbase version and the Jaguar F-Type Convertible. Each of the three models' suggested retail prices will be lowered by around 200,000 RMB ($32,460) on average. The price cuts will begin on August 1.
While Jaguar Land Rover is not the only target of the NDRC's anti-monopoly investigation, it is the first to react. As a result, many analysts believe that JLR's decision will help it gain a significant amount of positive press. They also expect JLR's rivals to follow suit.
One of these is FAW Volkswagen. Not long after Jaguar Land Rover made that announcement, FAW-VW Audi also announced that it will lower the prices of its domestically-produced models, such as the Chinese-made Audi A6L. The price cuts will be based on prices of individual auto parts, and will also begin on August 1.
However, JLR's sales seem to be doing well without the price cut. Without the price cut, several Land Rovers sold in the country still exceed their suggested retail prices by 50,000 RMB to 100,000 RMB ($8,115-$16,230). A representative from Beijing's largest JLR dealership explained why, commenting that there is around a two month wait time for Land Rovers in the country. The representative added that orders made in June are still in the process of being shipped.
The NDRC anti-monopoly investigation on the automobile industry began in 2011. Several premium luxury automobile and auto part manufacturers are being investigated in allegations of a potential monopoly. According to reports, the NDRC is close to issuing punishments and fines for some of the manufacturers being investigated.
