(autoinsidernews) - General Motors is cutting prices on two of its Chinese-built models by up to 10 percent in an effort to drive sales. GM's price cuts could force its competitors to make similar cuts. Shanghai GM, General Motors venture with Shanghai Automotive Co., has cut prices on the Chevrolet Lova and Aveo by up to $1,268 (9,900 yuan).
Automakers here tend to slash prices at the beginning of the year to attract buyers, said Xie Shuguang, senior analyst with Shanghai Securities. Now that Shanghai GM has taken the lead, more will follow soon.
At the start of 2006, Shanghai GM cut prices on its Regal and Espica models by as much as 10 percent, General Motors sales in China in 2006 were up by 32 percent in 2006, reports Trend.