Peugeot China slashes car prices

SHANGHAI, Nov 23 (AFP) – Franco-Chinese joint venture Dongfeng Peugeot Citroen Automobile Co. Tuesday slashed prices on all its Peugeot 307-series models in China by CYN 20,000 (USD 2,400) to counter growing competition.

Based in China’s Wuhan city, the group also said on its website it would offer the same rebates to customers who made purchases after June.

The company, a venture between PSA Peugeot Citroen and China’s Dongfeng Motor Corp, said that the price cuts ranging between CNY 5,000 and 20,000 were a result of growing competition.

Last month, the group’s Citroen unit announced it expected to miss its full-year car sales target after sales of 46,700 units in the first half of the year, down from the 52,200 sold in the same period a year earlier.

The company had been forecasting a 20 percent increase in annual sales to 124,000 units, compared with growth rates of 24 percent in 2003 and 60 percent in 2002.

Consumer demand for autos in China has been dampened this year by the government’s clampdown on lending to the sector, compounded by fierce competition as many consumers delay buying in anticipation of lower prices.

Passenger car sales for the first 10 months rose 18.76 percent to 1.88 million, compared with growth of 20.68 percent for the first nine months and 23.68 percent for the first eight months.

© AFP

Subject: French News