Automakers under pressure in anti-trust probe

Foreign carmakers are coming under fire for their Chinese pricing strategies

Toyota, Honda, Mercedes Benz, Audi and BMW have been under intense scrutiny from China's various regulatory bodies for supposedly systematically overpricing car parts.

Many are already in the process of lowering the cost of their spare parts, with some facing the prospect of hefty fines.

According to recent investigations by the National Development and Reform Commission (NDRC China's top economic planner, foreign carmakers have been acting against the interests of Chinese consumers by artificially inflating prices.

Japanese automakers Toyota and Honda, in conjuction with their respective local joint ventures, have already pledged to lower their prices in response to the accusations. The NDRC has also stated it will release findings on 12 more Japanese firms in the coming weeks.

Mercedes-Benz has said it will begin cutting prices by around 15% in September, while fellow German luxury brand BMW has also pledged to lower prices on more than 2,000 components by an average of 20%.

Despite reducing prices by as much as 38% in August, Audi will reportedly bear the brunt of the accusations and could face a 250m yuan ($40m) fine. According to China's 21st Century Business Herald, the Bavarian marque has already admitted that its sales arms violated China's six-year old monopoly law and that it would pay the necessary fine.