Many cars in China sell for a much higher price than in the United States or Europe. But when BMW X5 goes on sale in China this month, prices will more than double. The starting price for BMW X5 3.0si is $45,900 in the U.S., but the same car is sold at a price of 8900,000 yuan ($118,666) in the Chinese market.
“When a car is imported to China, the customs will levy a 25 percent import tax, a 17 percent value-added tax and a 3-20 percent consumption tax. All these taxes, which are based FOB price, will add 80 percent to the FOB price,” Li Li, manager from China Trading Center for Automobile Import, told Gasgoo.
Li Lie said that the ore a car is imported to China, its markets price will be doubled or even higher than its FOB price. China”s car import regulations require foreign auto makers to have a chief wholesales representative, which will take 10 percent of the import car prices (FOB plus all tax). Not only that, below those guys are the local sales representatives, who will take about 13 percent from the price.
For a 2008 Mercedes-Benz S-Class S 64, you would spend be spending close to what you would you spend for a Rolls-Royce Phantom in the U.S. The S-Class 64 which sells for about $172,878 in the U.S., but it sells 2.98 million yuan in China ($397,333).
[tags]Cars, Car, Auto, Automobile, Vehicles, Technology, Auto News, News, Automotive, BMW[/tags]