Due to the sluggish market in China, Hyundai Motor has slashed the price of its two SUV’s by nearly 12 %.
The South Korean automaker’s shipments in China fell 14 percent in the second quarter, leading it to pledge further incentives in order to compete with Chinese automakers.
The price cuts follow similar moves by General Motors Co and Ford Motor Co in China, where car sales are expected to grow 3 percent this year, less than half the pace of the previous year.
Volkswagen AG has also increased discounts on several popular vehicles, as an economy expanding at its slowest pace in quarter of a century and a stock market slump depresses demand for cars and other consumer goods.
But SUVs remain a bright spot, with many middle-class Chinese trading up from sedans, helping to lift SUV sales by more than a fifth this year, according to IHS Automotive.