Toyota Motor Corp. share price up, to reduce Lexus spare parts prices in China

Toyota Motor Corp. made an official statement today and revealed that it intends to reduce prices of spare parts in China for its Lexus-branded vehicles. The price change will take effect in September 2014. Toyota made the decision after a Chinese antitrust probe into the auto industry, putting the company in the ranks of other foreign car manufacturers, which also reduced prices of spare parts recently.

Toyota Motor Corp. said in its statement, which was published on the website of Lexus China yesterday: “In response to the NDRCs concerns over monopoly practices in the industry, Lexus China will cut prices of spare parts in China starting from Sept. 1” The car maker also said: “As a company that is rooted in China, Lexus will strictly comply with Chinas laws and regulations, and continually improve its business practices.”

Lexus will cut the prices of nearly 15 000 Lexus spare parts by an average of 26% as of September 1st. The company said that there will be a 35% reduction in prices of radiator parts, while engines and transmissions parts will become 30% cheaper.

Lexuss spare parts price reduction puts Toyotas brand among other foreign auto makers such as BMW, Volkswagen AGs Audi brand and Daimlers Mercedes-Benz, which have already officially revealed some price cuts in China. The companies decision came as a response to antitrust regulators accusations that some of them have been following an anti-competitive behavior.

The auto industry was not the only one that has recently been put under scrutiny by Chinese regulators. In the last few years the countrys government bolstered its efforts to force foreign companies comply with its 2008 anti-monopoly legislation, putting them under pressure and close monitoring.

Toyota Motor Corp. rose by 0.66% on Thursday to close the trading session in Tokyo at ¥5 990 per share, marking a one-year change of -0.66%. The worlds biggest car manufacturer is valued at ¥20.34 trillion. According to the Financial Times, the 23 analysts offering 12-month price targets for Toyota Motor Corp. have a median target of ¥7 250, with a high estimate of ¥8 800 and a low estimate of ¥6 400. The median estimate represents a 21.83% increase from the previous close of ¥5 951.