After tariff cuts: Tesla lowers prices in China, BMW pulls probably

05/23/2018

After tariff cuts Tesla lowers the prices in China, BMW pulls probably

REUTERS

BMW iX3: German sedans not only from BMW are coveted among the wealthy layer in China. BMW is now considering lowering prices in the world’s largest car market

After Announcement of tariff reductions on cars and car parts in China, several German manufacturers have announced an adjustment of their prices. BMW said the company would review its pricing system and respond accordingly.

The tariff cuts are “a strong sign that China continues on its path of opening,” said a BMW spokesman on Wednesday. This step would benefit customers in China, and the Chinese market is expected to develop even more dynamically. Audi also announced a review of its pricing system in China.

In the meantime, the US electric car pioneer Tesla was bursting with concrete figures. The model X is to cost China in future up to $ 14,000 less, the company said. For the models S and X, the prices should be reduced by a good six percent, said a representative of the sales department in Beijing, the news agency Reuters.

Also read: Now VW and Co can attack properly in China

According to experts, this is likely to be a domino effect on the entire Chinese car market trigger. Of the premium-class import vehicles, the price cuts would ultimately extend to the local Chinese brands, said Yale Zhang, of the Shanghai-based consulting firm Automotive Foresight.

The Ministry of Finance in Beijing announced on Tuesday that from July onwards, import duties on most passenger car models will be reduced to 15 percent from 25 percent.

Rei / Reuters

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