Both Mercedes and Audi have announced price reductions on some of their key models in a bid to stimulate demand. For example, the new entry-level Mercedes E200 CDI is now around 10% cheaper than the model it is replacing, with an ex-works price of €41,200.

Meanwhile archrivals Audi have also been reducing prices. It has announced an average 9.8% price reduction across its range and says it will also be increasing basic specification on most models.