28.07.2014 - Audi lowers prices for spare parts in China

Audi corporation announced reduction of prices on spare parts to their cars in China. Decision to reduce the cost of production of company that is produced on local capacities, was made in connection with investigations of antitrust agencies in China. In addition, the manufacturer of luxury cars is fighting for an increase in sales at the largest car market in the world. Reduced prices will be from 16% to 38%, which may adversely affect the company's financial results in the near future, but in the long run will lead to increased car sales. We forecast the stock price growth and recommend to include them in the long-term portfolio with growth potential up to 25% per year.

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