Volvo Car China cuts retail prices of auto parts

Volvo Car China said today it adjusted the suggested retail prices on a total of 11,693 auto parts after China decided to lower import tariffs on vehicles and auto parts.

“Volvo has adjusted the prices of some auto parts to benefit our consumers and enhance our service value, with a maximum price cut of 55 percent off its original price,” Volvo said in its statement.

Volvo said the new suggested retail prices of auto parts would be effective on Monday. 

Volvo had previously cut the prices of 10,941 types of auto parts in response to China's reduced import tariffs on auto parts.

Volvo is among the first batch of carmakers which announced a cut in the prices of its auto parts in the China market. 

The company also adjusted the prices of other frequently used auto parts and accessories that are not in the country's tariff reduction list, in order to optimize the cost for Chinese consumers. The frequently used auto parts and accessories cover a number of products which applied to all Volvo cars, including aluminum alloy wheel hub, air conditioner filter, brake disc, brake pad, water pump, and wiper blade.

Volvo said car owners will benefit from the price adjustment which sees the price of air conditioner filter cut by 20 percent and that for wiper blade slashed by 40 percent.

“Volvo is committed to provide safe, environmentally-friendly, high-quality luxury cars, customer-oriented service and experience to our consumers. Along with reducing the cost, we will provide a better service network,” the company said.

In 2017, Volvo sold 114,410 vehicles in China, up 25.8 percent year on year.

On May 22, the Ministry of Finance said that China would cut import tariffs on vehicles to 15 percent from 25 percent starting from Sunday. The ministry also said import tariffs on auto parts would be cut to 6 percent from 8-25 percent now.

Automakers including Tesla, Mercedes-Benz, BMW and Volvo adjusted the prices of their imported vehicles in the China market.