BMW has cut the auto parts prices of BMW models in China once again, following its Germany rival Mercedes-Benz.

 

According to BMW’s announcement, the suggested retail price of more than 4,500 auto parts for BMW and MINI models, covering most of the consuming products used during routine maintenance and some easily damaged exterior parts including front wings and fenders, will go down since this April 1st, some of them may even drop as much as 30%. To be noted, BMW had already once lowered the prices of its auto parts in 2014.

 

An executive from a BMW dealer confessed that in a long term, the price reduction of auto parts will definitely boost the market sales, but more importantly, keep the customers loyal to the brand, which will further promote new car sales.

 

An auto expert believed, with an ever increasingly competitive market, luxury brands will not only fight for new customers, but also try hard holding the existing ones by providing superior aftersales services. The luxury car market is expected to witness more price reduction of auto parts, leveraged by the competitive market as well as policy requirements in China.

 

For a long time, the prices of auto parts can be astonishingly expensive as those of finished cars in the Chinese market. Back in April, 2014, the Insurance Association of China and China Automotive Maintenance and Repair Trade Association firstly revealed an index, introduced in China to reflect the ratio between what it costs to buy all the parts of a car separately in total and the guide price of the very same finished car, of 18 mainstream models. Data showed, the ratio of an Audi A6L was 411.27%, BMW 320i was 661.74% and Mercedes-Benz even went as high as an astonishing 1273.31%.

 

After that, luxury brands including Audi, BMW, Mercedes-Benz and Jaguar Land Rover have all lowered their auto prices in response to China’s anti-monopoly investigation.

 

Auto experts believed that the price reduction of BMW and Benz recently is still partly motivated by China’s intensifying anti-monopoly investigation, even no carmaker has been punished for monopolistic behaviors so far.