SHANGHAI - China's top minivan-maker, Chongqing Changan Automobile Co. Ltd., said on Thursday it cut the price of one of its main products by 13 percent as competition intensified in the booming market.
Changan Auto, China's fourth largest vehicle maker, slashed the price of its SC6350CFH minivan, one of the "Star" series, by 6,000 yuan ($724.90) to 39,800 yuan, Changan Auto said in a statement published in the official Securities Times.
The latest in a series of price cuts over the past 15 months was taken "in the face of intense competition in the car market to raise the competitiveness of our product," the company said.
The company also knocked 10 percent, or 5,000 yuan, off the SC6350CFHK model, a more powerful version of the same eight-seat minivan, to 44,800 yuan.
On Monday, Volkswagen AG cut the price of one of its best-selling lines of Chinese-made cars by an average of 10 percent.
Analysts say China's car market -- where sales topped one million for the first time in 2002 -- is headed for a price war as automakers ramp up capacity and vie for a bigger piece of the action.
Changan Auto, which has 8.3 percent of China's auto market, makes compact cars with Suzuki Corp. and is building another venture with Ford Motor Co.
Its 2002 profit soared 420 percent to 835 million yuan as sales jumped 35 percent to just over 300,000 vehicles.