Jianghuai to raise Binyue-series price by 5,000 yuan

Shanghai, April 21 (Gasgoo.com) Jianghuai Automobile announced yesterday that the price of the Binyue-series sedan will be up by 5,000 yuan ($714.28) due to price rise of international iron ore and oil. It is the first official announcement of price rise by the carmaker following the cost rise of raw material in automobile industry last year.

An Jin, the general manager of Jianghuai Automobile, noted that the pressure of price rise for auto parts suppliers is so great that if they continue to provide the products at the same price as before, the quality would probably deteriorate, and thus consumers' interest finally would be hurt.

The fact that Jianghuai Auto raised the price before the 2008 Beijing auto show indicates that the wave of auto price reduction has already ebbed away, and car price would rise due to increasing iron ore price.

Wu Xuesong , vice-president of Changan Group disclosed that the price of exported models of home-made brands has been raised in overseas market since April 1 and the price of all own-brand vehicle models has already increased by about 10%.