Chery has no plan to raise car prices despite soaring costs, official says

Shanghai. March 3 (Gasgoo.com) – China’s largest home-grown automaker Chery Auto has no plan to raise car prices despite soaring raw material prices.

 

"Almost all raw material prices are soaring, steel, oil products and labor costs, you name it!” said Li Feng, deputy general manager of Chery Auto. “However, cars are the only thing that is experiencing price cuts. This is a serious challenge to Chery and this is a serious to China’s automobile industry.”

 

Chery has been well prepared for this challenge, Li Feng said. “We’ve stabilized our car prices early on and we have no plan to raise car prices in the near future.”

 

Besides Chery, other Chinese automakers also indicated that they have no plan to raise car prices for the time being.

 

"The raise of raw material costs is testing our profit-making capability," said Fu Shoujie, deputy general manager of Guangzhou Honda. "We will try our best to minimize the impact of steel prices on our car prices by improving our cost management."

Takehiko Kikuchi, managing director of Dongfeng Nissan Passenger Vehicle Company said his company would not pass the soaring material costs on to car consumers.

 

"The situation we have today is that raw material costs are raising while car prices are falling. This will make competition between car makers even harder," Kikuchi said. "Our key to survive the difficult situation is to try our best to absorb the impact of the climbing costs."