China's auto dealers and car makers are expected to continue to cut prices as they try and rekindle demand following a decline in auto sales for several months.

　　However, analysts questioned whether the efforts will pay off as the latest jump in refined oil prices will increase the pressure facing automakers and dealers.

　　Corolla cars, which are made by Japan's Toyota Motor Corp at its Tianjin joint venture, are now sold at 5,000 yuan (US$602) cheaper per unit. Corolla models are priced between 175,000 yuan and 208,800 yuan before the price cuts.

　　It's part of a three-month-long marketing campaign starting from September 1 to commemorate the car's two years of production in China by FAW-Toyota Motor Sales Co, a joint venture between Toyota and China's First Automobile Works.

　　The latest nationwide campaigns by Toyota also include a four-month-long price cut of 5,000 yuan on its VIOS models from August 1.

　　Dealers of Passat and Santana, two models produced by Shanghai Volkswagen, also cut prices by between 1,000 yuan and 5,000 yuan, according to media reports.

　　Analysts say the car makers and dealers are eager to reduce their inventory as the upcoming traditional peak season is seen as the best opportunity to sell more.

　　"Price cuts are the most direct way of boosting sales in the auto market, especially at a time when the market shows no signs of recovery," said Liu Fei, an auto analyst at Automotive Resources Asia's Beijing office.

　　China's auto inventory totalled around 113,400 units across the country in the first seven months.

　　"Dealers are eager to get more capital by reducing stockpiles after banks tightened credit this year," said Yale Zhang, an auto analyst with CSM Asia's Shanghai office.

　　Though the price cuts this year have already impacted automakers' profits, analysts believed that there's still room for further discounts or price cuts on the domestic auto market because "to grab more market share, rather than retaining profit growth, is the most crucial thing for car makers."

　　Despite these efforts, Liu also pointed that buyers are delaying their purchase plans due to the rise in oil prices and it is anybody's guess whether the price cuts will boost car sales.

　　"I planned to buy a car priced at about 200,000 yuan as cars are affordable after the previous price cuts, but now I have to factor in the oil price hike," said Zhou Xinqun, a 34-year-old bank manager.

　　"It's expensive to maintain a car. I'd rather wait for several months to see whether the oil prices will drop," he added.

　　Most gasoline and diesel prices in Shanghai were raised 7.8 percent a week ago.