Published By : 30 Jul 2018 | Published By : QYRESEARCH
The Giant automaker, BMW has recently announced that it has hiked the price of its two major sports utility vehicle (SUV) in China. The two SUVs were X5 and X7 models, which took a surge in price by 4 and 7 % respectively on Monday.
The hike in price came just after China imposed a tariffs on American-made imports. According to a BMW speaker, the price were changed due to the heavy import duty for US manufactured cars. Some of the analyst didn’t find the change shocking amidst the rising tension between trade wars.
Earlier this month, Beijing has imposed new tariffs on American made vehicles in order to retaliate against the tariffs imposed by US on Chinese exports worth US$ 34 bn.
China is the biggest market for the German automaker as they have sold 560000 vehicles last year. This number was more that the vehicles sold in Germany and US combined.
Last Year, BMW reported to have exported around 81000 vehicles from South Carolina, which accounted for US$2.4 bn in sales. South Carolina is the company’s biggest plant in the world. It exports more number of vehicles than any other company in US.
The Company manufactures vehicles in China with the help of local player, called Brilliance Automotive. Surprisingly, these vehicles does not fall under the new imposed tariff tally.
BMW has shown interest in increasing the production of the Vehicle in China, due to the rise in demand of its vehicle. In order to deal with the trade war, various automotive industry have taken increased the price. For example Tesla has increased the price of their vehicle by 20 % in China.