AN anti-trust probe into global automakers is being cheered on by car dealers in China, who say that companies such as Audi and Mercedes-Benz have been exploiting their dominance to boost profits in ways that would not be tolerated in Western markets.

    Foreign brands including Jaguar Land Rover, Volkswagen AG’s Audi, BMW and Mercedes-Benz are scrambling to lower prices for both new cars and spare parts in an effort to appease Chinese regulators who have accused some of them of anti-competitive behavior.

    As well as charging higher prices in China than consumers pay elsewhere, some dealers say foreign luxury marques have also been running quasi-monopolies on even generic spare parts and accessories such as tires, engine oil and aluminium wheels.

    “High-margin new car business pretty much dried up in China. That means if you procure other things you sell at the dealership the way the automaker dictates, you cannot possibly make money,” said Yale Zhang, head of consulting firm Automotive Foresight.

    “Automakers slap high margins and kick up wholesale prices dealers pay — so high that there’s really no room for you as a dealer to play with and maximize profit.”

    An array of industries have been coming under the spotlight as China intensifies efforts to bring companies into compliance with its anti-monopoly law enacted in 2008.

    The auto sector has been under particular scrutiny, and the National Development and Reform Commission has been investigating the industry.

    (SD-Agencies)