A change in the luxury tax in China currently employs the big German premium carmakers. China’s Ministry of Finance had communicated a change in the tax regulation for luxury cars around a week ago and thus reduced the limit, from which the delivery is due, of 1.3 million yuan (currently around 154,000 euros). The new standard has been in force since last Sunday and is particularly likely to help the Chinese brands who are traveling in the upper class and could still fall below the limit.
This no longer only affects cars with combustion engine, but also electric vehicles with a price without VAT beyond 900,000 Yuan (currently around 107,000 euros), as the authority announced. It applies to new vehicles, but not for used cars. The new guideline also affects those German carmakers who produce for the premium segment in the world’s largest car market. These include Mercedes-Benz, Porsche,, Audi and BMW.
What the German car manufacturers say
At BMW, it is assumed that the change will not have a major impact. If you buy such a car, you will not tend to prevent it from the surcharge, said a spokeswoman. The new tax policy for luxury vehicles concerns only a limited number of models from the Audi brand sold in China, Audi said. Audi continues to observe market developments and, if necessary, adhere to its strategy to ensure competitiveness.
Porsche is currently checking the details of the guideline and possible effects on the business, a spokesman for the sports car manufacturer said. Together with his trading partners, Porsche is looking for solutions to protect the interests of the directly affected customers. Mercedes-Benz did not want to comment on the request.
Overall, the new regulation will not go past the German manufacturers without a trace, said car expert Ferdinand Dudenhöffer. Because exactly the vehicles are affected in which the Germans in China are still ahead in China today, namely the large -engine burners. All are affected, albeit to different degrees.
China’s association for passenger cars kept the new regulation “reasonable”. The number of luxury vehicles on the Chinese car market accounts for a thousandth, association president Cui Dongshu wrote in an online contribution shortly after it became known. Auto imports have also dropped sharply in recent years.