Shanghai (ZXZC)- After China announced that the VAT rate for manufacturing industry will be cut to 13% from 16%, such luxury carmakers as Mercedes-Benz, BMW, Audi, Volvo, Jaguar Land Rover and Lincoln have released statements to lower the suggested retail prices on locally-produced and imported models in China.

The price cuts offered by automakers don't mean that consumers will enjoy the corresponding discount. In accordance with relevant regulations, retail price for delivery should be fixed by authorized dealers rather than carmakers.

However, NIO, a startup who targets premium EV market, said on March 19 that it won't change the current prices as other luxury carmakers did.

“As a young car brand, NIO currently posts meager margin since we have poured huge amount of resources in developing good products and superior services. The latest VAT drop is a favorable policy to boost the real economy and ease the tax burden on companies. Besides, it will help us continuously plow sufficient resources in R&D and services and further produce pleasant driving experience for users, said the startup.

Besides, NIO added that it doesn't have the price change plan for the near future and will maintain a stable pricing strategy in the long run.

Apart from NIO, most China-owned car brands have not decided to cut prices yet.