THE luxury car market in Shenzhen witnessed sweeping discounts in July, which were triggered by dropping sales and restrictions on the number of new cars allowed to be registered, Shenzhen Economic Daily reported.

    “A drop of 70,000 yuan (US$11,255) to 80,000 yuan is common now, with some even sold at prices down by several hundred thousand yuan,” said a luxury car dealer in Shenzhen.

    Car dealers always resort to discounts when competition intensifies. Some BMWs are being sold at a 30-percent discount. The highest discount offered on an imported VW Golf was 13,480 yuan. An Audi is currently on sale at a record low price for 2015, according to one dealer.

    The price battle spread to the car manufacturers, too. Land Rover announced an unprecedented discount. It said July 1 that Land Rover’s official price spectrum would descend by about 50,000 yuan.

    The total number of imported cars sold at dealerships was 379,800 as of May 31, down 21.1 percent compared to the same period in 2014. Land Rover, Volkswagen, Audi and Renault all saw a drop of 40 percent in sales, with only Mercedes Benz escaping the drastic drop.

    The widespread shrinking sales are mainly the result of the city government’s limit on the number of new cars that went into effect Dec. 29, 2014. According to the city’s vehicle administration, 119,800 vehicle license plates were issued in the first half of 2015, only a few more than the first quarter of 2014.

    The policy has not only affected car dealers but also manufacturers. Many manufacturing employees were asked to take high-temperature leave in July and August. The head of Shenzhen’s car dealers’ association said July and August have always been the off-season for the luxury car market. (Zhang Xiaoyi)