BMW has announced that it is increasing the price of US-made SUVs in China. This move comes after China made its decision to increase the tariff on products imported from the United States. X5 and X6 models from BMW will be facing the immediate impact of the price hike, with a respective price hike of 4% and 7%. The official spokesperson of BMW said that the price hike was the result of the increase of import duty from the side of China. These movements can be tracked down to the trade war that has been happening between China and the US.
BMW is not the only company that has increased the price of products. A few weeks back, Tesla said that its products would face a price-hike in China, following the tariffs imposed by the Chinese administration, as an immediate reply to the tariffs from the US. However, things are a bit different from BMW, whose primary market is China. In fact, BMW sells more cars in China compared to what it does in the US and Germany combined. The price hike is going to affect the number of sales of BMW in China, which had purchased 560,000 cars in 2017.
It should be noted that the German manufacturer has some production plants in China, via joint ventures. It would help the company to provide some vehicles without increasing the price-hike. In addition to this, the company is also planning to open a dedicated production plan in the country soon. However, the company has maintained that the production plants are being started for addressing the increase in the demand, and not to take on the trade war that has trouble the German car-maker. As with the other manufacturers out there, Ford says that it has no plans to change the prices of its vehicles despite the increase in tariff.
Email: firstname.lastname@example.org Phone: +44 20 4732 1985
Ben has been listening to the technology news for quite some time that he needs just a single read to get an idea surrounding the topic. Ben is our go-to choice for in-depth reviews as well as the normal articles we cover on a normal basis.