Shanghai (ZXZC)- China's announcement on March 14 that the value-added tax (VAT) rate for manufacturing industry will be cut to 13% from 16% effective on April 4 has triggered a positive response from premium carmakers, including Mercedes-Benz, BMW, Jaguar Land Rover, Volvo and Lincoln. 

Mercedes-Benz

Mercedes-Benz said on March 16 that it would cut prices by up to RMB64,000 on the Mercedes-AMG models, by up to RMB60,000 on Mercedes-Maybach models, by up to RMB40,000 on Mercedes-Benz models and by up to RMB7,000 on Smart models. 

BMW

On the same day, BMW China and BMW Brilliance jointly announced a new round of price reduction that involves such locally-produced models as the BMW 3 Series, the BMW 5 Series, the BMW X3, imported models of the BMW X5 and the BMW 7 Series as well as the Mini-branded models. The BMW M760Li xDrive will sell for a suggested retail price of RMB2,428,000, a drop of RMB60,000 from its original price.

Jaguar Land Rover

Jaguar Land Rover also joined the latest price cut move in China. The automaker said on last Saturday that the prices of Jaguar's and Land Rover's models will be cut by up to RMB42,000 and RMB85,000 respectively. Of that, the prices of all Land Rover Range Rover models involved will be reduced by over RMB33,000. 

Volvo

Volvo's price cut announced on March 16 covers its entire lineup of models delivered in China. The reduction will be as high as RMB60,000 on the Volvo XC90 flagship SUV. 

Lincoln

On March 17, Lincoln became a new participant who decided to cut suggested retail prices on all models sold in China by up to RMB20,000.