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Association to probe foreign automakers

By LI FANGFANG | China Daily | Updated: 2013-08-15 02:08

Earlier this month, the NDRC levied its biggest fine — nearly 670 million yuan ($108 million) — on six milk powder companies accused of price fixing and anti-competitive practices.

It is also investigating some 60 foreign and local pharmaceutical firms for fixing prices.

Jia said the automobile industry's pricing system should be regulated, though it's hard to tell what specific measures the government will take in the near future. "The automobile industry is much more complicated than the milk powder sector, and involves too many government departments," said Jia.

According to an earlier report in The Wall Street Journal, listed prices of luxury cars in China are on average 64 percent more expensive than similar vehicles sold in the US, based on a comparison of three models: the Mercedes-Benz C-Class, Audi A4 and the BMW 3-Series.

The gap is even bigger when it comes to imported models, the report said.

Even after stripping out consumption taxes and value-added taxes, those three vehicles are still on average 37 percent pricier in China.

As China is not likely to adjust its vehicle tariffs, Jia suggested the government take actions to limit the big price difference between imported cars and their overseas versions.

"They should seriously monitor and control the pricing system in the automobile industry, not only to safeguard consumers' interests, but also provide a fair playing field for the struggling domestic automakers," said Jia.

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