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The prices of high-end cars that sell for more than 200,000 yuan will drop more steeply than the prices of subcompact cars over the next one or two months, he added.

Dongfeng Yueda Kia has no plans to cut the price of its Rio and Cerato, which are selling well, said the company's public relations department.

Toyota's Hainan-based distributor Fengzhenghua company said market conditions would determine the prices of the Corolla, the Reiz and the Vios in the coming months.

But China Securities Journal quoted unnamed analysts as saying that these carmakers will find it hard to resist the price cutting trend when this year's first group of new models enters the market in droves in March.

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