Joint-venture ;automaker Dongfeng Peugeot Citroen Automobile Co. slashed prices on all its Peugeot 307-series models in the Chinese market by 20,000 yuan (US$2,400) to boost its sales.

It would also offer the same rebates to customers who bought the models after June, the company said.

The move was the latest step of Dongfeng Peugeot, a joint venture between Chinese manufacturer Dongfeng Motor Corp. and France��s PSA Peugeot Citroen, to sharpen its competitive edges when facing a slowing market and increasing competition.

Last month, the company��s Citroen unit said it expected to miss its full-year sales target of 124,000 units. In the first half of this year, it only sold 46,700 sedans, 5,500 units less than the same period last year.

Before the forecast adjustment, it had projected a 20 percent growth rate this year, compared with a 24 percent rise in 2003 and a 60 percent surge in 2002.

Consumer demand for passenger cars in China has been dampened this year by the government��s macroeconomic controls on the over-heated sector. Meanwhile, fierce competition has also made many consumers delay buying in anticipation of lower prices.

Passenger car sales for the first 10 months of this year climbed 18.76 percent to 1.88 million units, compared with growth of 20.68 percent for the first nine months and 23.68 percent for the first eight months.

Source: Shenzhen Daily-Agencies