China's Xiali Auto Cuts Prices Of Three Sedan Models

SHANGHAI June 2, 2003; Dow Jones reported that Tianjin FAW Xiali Automobile Co. , the joint- venture partner of Toyota Motor Corp., has cut its prices on three models to help boost its share of China's intensely competitive auto sector.

The price cuts on the Vizi, Echo, and Xiali 2000 sedans will range from 5,000 yuan ($1=CNY8.28) to CNY10,000, FAW Xiali said in an announcement over the weekend.

"The price cuts this time will help the company expand its market share...but they aren't expected to affect the full-year earnings," FAW Xiali said.

The price cuts went into effect Sunday it added.

The China Daily reported Monday that Xiali also cut the price of its old Xiali models by CNY5,700 May 23, and said that FAW Xiali's various models are now priced between CNY36,800 and CNY119,800.

It added that the company sold 36,000 cars in the first four months, up 11% on year.

FAW Xiali was one of the first companies to cut prices early last year and was followed by price cuts by many other car companies. This reduction could spur yet another round of cuts.