U.S. tech giant Tesla Inc and German automaker BMW have reduced prices in the Chinese market for their U.S.-built luxury cars following the Chinese government's announcement that it will cut auto tariffs, marking progress in trade negotiations between China and the U.S.
Tesla, the California-based electric carmaker, slashed the prices of its Model S sedan and Model X sport utility vehicle (SUV) in the Chinese market on Friday.
The Tesla Model S with a minimum configuration was reduced to 742,300 yuan ($107,501.8) from the previous 782,900 yuan, while the lowest price of the Model X SUV was cut to 796,800 yuan, down 65,000 yuan, according to Tesla's official website.
The previous prices were the result of an adjustment on November 22, when Tesla announced plans to cut prices by 12 to 26 percent to make the cars more "affordable" in the world's top auto market, according to Tesla CEO Elon Musk, Reuters reported.
Along with Tesla's move, German automaker BMW announced on Saturday it would temporarily adjust its suggested retail price of U.S.-made vehicles in the Chinese market, specifically the BMW X5, X6, X5M and X6M, according to a statement the company sent to the Global Times on Sunday.
Effective Saturday, the price adjustment was a response to China's latest announcement about temporary reductions of tariffs on vehicles imported from the U.S., the statement said.
Its all-new BMW X5, which was launched in early December as the fourth generation, is now priced at 779,900 yuan, down 30,000 yuan.
The price cuts came after China announced on Friday it will suspend recently imposed tariffs on U.S.-made autos and components for three months, involving 211 items.
The Customs Tariff Commission of the State Council, China's cabinet, said in a statement that it will stop imposing tariffs of 25 percent and 5 percent on U.S.-made automobiles and components from January 1 to March 31 in 2019, according to a statement published on the website of the Ministry of Finance on Friday.
BMW said in the coming three months, it will continue to look closely at the government policy and take quick action if there is any tariff adjustment.
