10% Tax on luxury cars in China…..will it really change anything?
China’s Ministry of Finance has put a 10% tax on super luxury cars starting immediately. Buyers of vehicles costing 1.3 million yuan (USD189,000) will start paying more but this price hike is expected to have little impact on sales figures. This is a guide for reasonable consumption and a move towards lower emissions and saving energy.
Best selling luxury cars like the Ferrari GTC4Lusso, Bentley Bentayga and Aston Martin DB9 will continue to sell well despite this we are sure. This tax is China’s latest move to tone down spending by the country’s growing ranks of wealthy consumers. While the additional cost will be a limited deterrent for people willing and able to spend vast sums on a car, it’s another drag on these vehicles just as they were showing signs of recovery amid President Xi Jinping’s calls for thriftiness. It also comes as the government considers extending a tax cut on smaller cars due to expire this month.
Manufacturers of ultra-luxury vehicles have been shifting their lineups in recent years to appeal more to Chinese buyers, who generally prefer large autos over sports cars. Rolls-Royce and Aston Martin are both planning their first SUVs, following Bentley’s lead with the Bentayga, which starts at 3.98 million yuan in China.
Lamborghini, which counts China as its second-biggest market, sold more than 2,000 vehicles through June this year, a record tally for the carmaker. The Italian supercar maker also is planning to begin sales of the Urus SUV next year.
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