China: Mercedes-Benz faces heavy penalty for price fixing

Mercedes-Benz is facing a fine of 350 million yuan (INR 359 Crore approx) in China, after the brand was allegedly found participating in price fixing tactics. The German automaker reportedly set a minimum price cap for some of its car models and spare parts, and reprimanded dealers who went below the stipulated amount.

As per the report by autonews, Mercedes violated the anti-monopoly law in China. The luxury car maker and its dealers in Jiangsu capped the lowest sales price of the E-Class, S-Class and some spare parts according to the Jiangsu pricing regulator. Apart from the German marquee itself, the brand’s dealers have also incurred a fine of 7.7 million yuan (INR 8 Crore approx). Media reports say, Mercedes isn’t challenging the decision has accepted the penalty levied.

Premium pricing by car makers is not an uncommon practice. In India too, manufacturers have steadily increased the minimum prices of their models. Click here for a look at Team-BHP's analysis of German car pricing in India over the past decade.

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