Alright if you live in China

[AWD*V70XC]

This is a recent newspaper cutting from a Chinese paper, looks like we are not the favourite ones at the moment.

VOLVO Group said it slashed the prices on all imported cars under its brand in an attempt to counter the challenge brought by a further tariff reduction by China in the auto sector.

The Swedish-based group, one of the leading vehicle and construction equipment makers, will lower the price of its XC90, S80 and S40 models substantially while the price cut of its other imported models is expected at around 20,000 yuan (US$2,478) on average.

Chinese customers would be able to buy an S80, its most popular model on the mainland, for as low as 608,000 yuan while its newly introduced model, S40, is expected to sell at around 383,000 yuan.

Its main competitors like Mercedes-Benz and BMW enjoy a price advantage as they already produce their models in China in cooperation with domestic counterparts.

However, Volvo's business expanded quickly in the world's third largest auto market as its sales jumped 86 percent during the first 11 months this year, far beyond its 15 percent expectation.

The Chinese government will further lower the tariff on imported cars and auto parts from January 1 as part of its commitments to the World Trade Organization.

The tariff on complete cars will be reduced form 30 percent to 28 percent, and that on auto parts will be lowered from 13.5 percent to 10 percent.

I am not moving to China to avail of cheaper prices when I can move manufacturer and get just as good a deal.