Shanghai VW cuts price 12% to boost sales

Shanghai, February 18 (Gasgoo.com) Shanghai Volkswagen, German Volkswagen AG's Chinese venture with Shanghai Automotive Industry Corp (SAIC), has cut vehicle prices by nearly 12 percent in order to lure customers amid slower demand, the firm said in a statement on Tuesday, reported Reuters.

Prices of the 2-liter Touran multipurpose vehicle is cut to between 149,800 ($21,920) to 171,800 yuan, down from 169,800-189,800 yuan, the company.

The prices of its Polo series of compact cars have been slashed to as low as between 85,800 and 122,600 yuan, from 90,800-133,000 yuan previously. Price for the Santana Vista sedans is slashed to 124,800 yuan, down from 132,800 yuan,

China sold 735,500 China-made vehicles in January, down 14.35 percent from a year earlier as a result of the cooling economy. Industrywide sales growth may slow to 5 percent this year, half 2008's pace, according to the China Association of Automobile Manufacturers.