BYD's price cutting strategy null in March

BYD Automobile's price-cutting strategy has not played effective in the month of March, as its sales volume has not boosted after a plunge in the first two months of 2011, the China Business News reported Friday.

BYD launched a price-cutting campaign on February 18 in an attempt to remedy its gloomy sales picture.

A manager of BYD 4-S store in Shanghai said sales volume of F3 and F6 dropped 50 percent in the first half of March.

Another owner of a BYD 4-S store said that only 50 models were sold in the first half of March, down 50 percent.

"It is still difficult to sell F0 even at a cut price, to 20,000 yuan ($3,000) per unit," the manager said.

According to industry insiders, the blame goes to the cancellation of auto subsidies that influenced the whole market. Besides BYD, Chery Automobile was also affected.