SHANGHAI, China (Reuters) -- Daimler's Mercedes-Benz will cut the prices of more than 10,000 spare parts in China by an average of 15 percent from the beginning of September.
Mercedes has joined Audi in lowering the cost of spare components and aftersales services as China steps up scrutiny of the business practices of foreign companies. Jaguar Land Rover has also unveiled plans to cut prices on three car models.
"The Chinese car fleet is relatively young, so the spare-part business is smaller than in saturated markets," Frank Biller, a Stuttgart-based analyst at LBBW, said. "The direct impact of lower component prices on Daimler’s profits will be limited."
The pressure on automakers is part of a broader effort by China to enforce anti-monopoly legislation introduced in 2008. Last month regulators opened an anti-monopoly investigation into Microsoft Corp. In recent years they have targeted industries ranging from pharmaceuticals and milk-powder producers to jewelers and technology firms, imposing big fines on some multinationals, such as Mead Johnson Nutrition and Danone.
Mercedes said in a statement Monday that its voluntarily price cuts on parts for all its models in China was "in response to an anti-monopoly investigation" by the National Development and Reform Commission (NDRC) into the auto industry.
The reduction "would further lower the usage cost for our customers and would improve Mercedes-Benz's competitiveness in the after-sales market," Marc-Oliver Nandy, executive vice president of aftersales for Mercedes in China, said in the statement.
Less than a month ago the company said it would cut service charges and corresponding spare part prices.