Analyst says cut-throat competition looks here to stay even if sales volume maintains 10 per cent growth
Denway Motors' 50 per cent-held Guangzhou Honda has become embroiled in the price war in the mainland by cutting prices of its Accord saloons and Odyssey multi-purpose vehicles.
Guangzhou Honda, a joint venture between red-chip Denway and Japan's Honda Motor, said six of this year's Accord models would be priced between 199,800 yuan and 289,800 yuan while two Odyssey models would cost between 246,800 yuan and 254,800 yuan.
It did not give a comparison with previous prices but analysts said they were generally about 20,000 yuan cheaper than last year's models.
This means prices of Accord models have been cut by between 6.5 per cent and 8.7 per cent while those of Odyssey models have been slashed by about 11 per cent.
Guangzhou Honda, which used to be known for its long order book due to the popularity of Honda saloons and the joint venture's limited production capacity, last cut prices two years ago.