A contracting economy and a governmental push to limit the number of new cars in certain metropolitan areas has led luxury car makers like BMW, Audi and Mercedes-Benz to offer discounts of up to 20 percent on their cars in China.
While the three car makers are hoping to post record sales numbers, many “aspirational” buyers, who gravitate towards vehicles like the BMW 3-Series and Mercedes-Benz C-Class, are holding off on big ticket purchases amid fears of an economic slowdown. Those models can command discounts of as much as 20 percent.
Municipalities like Beijing have limited the number of license plates being issued, as a means of curbing congestion and pollution, while Chinese banks are tightening up on lending. Both factors are having an unfavorable effect on new car sales, and the OEMs are hoping that discounts kill keep things moving.
[Source: Automotive News]