(Yicai) Dec. 14 -- Chinese joint venture carmakers are expected to slash prices further in a last dash to hit their annual sales targets, as prior discounts boosted sales by nearly a quarter last month.

Sales by mainstream JV brands surged 23 percent to 660,000 units in November from a year earlier, according to figures released by the China Passenger Car Association on Dec. 11. 

The sales spike was largely attributed to substantial price cuts that enabled buyers who were thinking of purchasing a compact car to consider popular mid-sized sedans instead.

Carmakers have dropped prices even further this month. The manager of a GAC Honda Automobile dealership said the discount on the Honda Accord, a mid-sized sedan, has been increased by CNY2,000 (USD280) to CNY45,000 (USD6,270) over the so-called Double 12 promotional period. Other mainstream models such as Toyota Motor's Camry and Volkswagen's Passat are offering about CNY50,000 off.

SAIC Volkswagen Automotive, a tie-up between SAIC Motor and the German auto giant, revealed new incentives on Dec. 4. Discounts for the Lavida, Passat, and other models this month go as high as CNY58,000. Meanwhile, buyers of Chevrolet sport utility vehicles can enjoy a limited-time discount of up to CNY60,000, according to the General Motors-owned marque.

A number of Chinese carmakers are also making year-end sales pushes. Several new energy vehicle producers, including BYD and Leapmotor, have come out with their own price reductions.

JV brands are relatively slow to transition to electric models so they mainly depend on gas-powered cars in China, Cui Dongshu, secretary general of the China Passenger Car Association, told Yicai. The performance of JV brands has been quite weak this year amid the rapid development of the NEV market, he added.

Last month, China's five best-selling passenger car brands included four domestic names: BYD, Chery, Geely, and Changan. Foreign JV FAW-Volkswagen fell out of the top three.

The manager of the GAC Honda dealership said that of the customers who visit his showroom, a quarter are eventually drawn to NEV brands and most are inclined to buy BYD.

Squeezed margins are starting to show at JVs as FAW Toyota Motor, a link-up of Japan's Toyota Motor and state-owned China FAW Group, was earlier reported to have closed some assembly lines at its Tianjin plant to reduce output for at least three months. Moreover, GAC Honda is reportedly planning to lay off about 900 employees.

Editor: Emmi Laine