South Korean automotive giant Hyundai Motor has slashed two SUV variants’ prices in China by 11.8%, while Japanese automobile major Toyota has voiced against being optimistic about profitability, against the backdrop of sales slump in that country.
The slowdown in growth being suffered by the world's biggest automotive market has prompted Japanese carmakers to reduce prices and dish out incentives to sustain competition, according to reports by Reuters.
Hyundai has reduced prices by up to 30,000 yuan ($4,832) on the larger Santa Fe model and $3222 on the ix35 SUV, even as the carmaker is scheduled to unveil the new Tucson SUV in September. Its shipments in China slumped 14% from April to June.
Toyota, having posted first-quarter net profit for three years in a row, witnessed an increase in sales revenues from China sales. However, the prices were said to be eating on profit.
China auto sales are reported to have fallen every month as economic growth has reflected the slowest pace in 25 years.
"In April-June, vehicle sales have progressed firmly but as for profitability, we can't be optimistic," Toyota Motor managing officer Tetsuya Otake.
Between April and June, Toyota notched up 10% rise in its net profit at $5.21bn.
