German carmaker BMW has slashed prices on several sedan models in hopes of reinvigorating slumping sales in China, which fell 16 percent in 2004, according to Chinese press reports on Thursday. The company, which sold 15,500 cars last year in China, has cut prices on several of its 3- and 5-series sedans by as much as 14 percent or 50,000 yuan ($6,000, €4,500),
China Daily quoted Christoph Stark, president and chief executive officer of BMW China Group, as saying. "We are making the price adjustment to be more competitive and play a bigger role in China's car market," Stark said. Consumer demand for autos has been dampened by the government's clampdown on lending to the sector, compounded by fierce competition as many consumers delay purchases in anticipation of lower prices. Stark said the company would take measures to unify prices on the same products throughout China and for the foreseeable future prices would remain stable. "The market is so fluid in China," he said. "The competition picture is not really clear and developed."