Vehicle price monopoly remains in China
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E-mail Xinhua, October 31, 2014
Huge price gap between parts and finished vehicles has exposed pricing monopolies and huge profits from vehicle maintenance.
Altogether 36 popular models popular in China were investigated, and the "part-to-vehicle ratio" remains above a reasonable level (around 300 percent) according to China's Insurance Association (IA) and Automotive Maintenance and Repair Trade Association (CAMRA).
Among the 18 models which had been inspected in April this year, 11 showed price declines and 5 increases, six months later, which translates into an average drop of 5.72 percent.
One model of Mercedes-Bents saw its part-to-vehicle ratio dropping from 1,273 percent to 1,173 percent. That of Corolla recorded the biggest drop, from 625 percent to 388 percent.
Frequently used parts did not show any price declines and some became even more expensive such as fenders, said Feng Jun with CAMRA.
Guo Hong with IA said that the two associations had decided to issue such ratios every half year, to provide reference for car buyers.
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