China Penalizes Toyota 87.6 Million Yuan over Lexus Price-Fixing

China Penalizes Toyota 87.6 Million Yuan over Lexus Price-Fixing 1

China’s market regulator has fined Japanese automaker Toyota with 87.6 million yuan ($12.5 million) for price-fixing on its premium Lexus cars in eastern Jiangsu province. The decision comes as China steps up regulation over auto sales in the world’s biggest vehicle market, where more than 28 million cars were sold last year.

Related: Careem Fined Rs 50,000 by Consumer Court

The anti-monopoly bureau of State Administration for Market Regulation said that between 2015 and 2018, the Japanese carmaker set a minimum sales and resale price for its cars in coastal Jiangsu province, which deprived dealers of pricing autonomy and harmed customers’ rights.

China Penalizes Toyota 87.6 Million Yuan over Lexus Price-Fixing 2

Lexus also fixed sales strategies in the region over the period, including offering customers discounts while asking them to purchase accessories at fixed prices. A spokesman at Lexus’ parent firm Toyota told Reuters the firm acknowledged the penalty and respects the decision. China’s auto sales are declining, but Lexus’ sales keep growing. It sold 180,200 vehicles in the first 11 months this year, a 21% jump from a year earlier.

Related: The Oligopoly Redefined..

Earlier in June, China’s market regulator also imposed a 162.8 million yuan fine on Ford’s joint venture with Changan for violating anti-monopoly law.

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About UsmanAnsari

A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com

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Fahad Hussein
Fahad Hussein
8 months ago

And we worship monopoly here 😕