2. Carmakers lowered prices of some models.

Major luxury automakers including Mercedes-Benz, Jaguar Land Rover and Lincoln started slashing prices on a slew of models.

The first move was made by Beijing Mercedes-Benz Sales Service Co Ltd, which announced adjustments to the suggested retail price on Tuesday with cuts of up to 32,000 yuan.

On the same day, Jaguar Land Rover followed suit, with the biggest price cut of 20,000 yuan. Lincoln also announced some price adjustments to its five models, the Navigator model receiving the largest reduction of 10,000 yuan.