Why Are Imported Cars So Much More Expensive Than Overseas?

[VanCaleb]

Due to substantial import tariffs, they are more expensive. More details on why imported cars are pricier than overseas are as follows: 1. High import tariffs in China: Taxes may not be noticeable during everyday shopping, but in reality, all purchased items, regardless of size, include taxes—just not separately labeled as in some countries. Moreover, the country's taxes are indeed not low, which explains why foreign goods are cheaper. 2. Profits from intermediate links: Cars sold in China require agents to operate, and these agents essentially monopolize the market through their own channels and capital. Therefore, imported cars often don't have the concept of 'cost-performance ratio.' Apart from the base price, agents also make a hefty profit. 3. Imported cars are not a necessity: Although imported cars boast better quality, superior assembly processes, and richer configurations, their excessively high prices essentially turn them into status symbols for the wealthy rather than products that genuinely attract consumers with these advantages.

[KendraMarie]

Last month when I accompanied my buddy to pick a car, I was also researching this issue. Found that the high price of imported cars mainly consists of three parts: a base 25% tariff, plus 17% VAT and consumption tax based on engine displacement. That's not all - shipping costs from overseas factories to Chinese ports aren't cheap either, and customs clearance and warehousing all get factored into the cost. The most brutal part is the dealer system - brands impose sales targets on 4S stores, and inventory pressures ultimately get passed on to car prices. For example, a certain German luxury SUV sells for 350,000 RMB in North America but costs 650,000 RMB in China, with over 200,000 being taxes and channel fees. However, parallel import channels have become much more mature now, saving about 10%.

[VanGiselle]

We were just talking about this in the car enthusiast group the other day. Actually, apart from obvious costs like tariffs, many hidden expenses go unnoticed. For example, EU vehicles must modify their headlights and emission systems to enter the market - just the fog light modification can cost thousands. Manufacturers also need to develop Chinese-language infotainment systems, and all these costs are factored into the car price. Not to mention brand premiums; those limited-edition supercars sitting in showrooms for half a year - the financing costs ultimately fall on buyers. A friend in trade mentioned that if containers get held up at customs for a month, storage fees alone can eat up 5% of profits. Nowadays, knowledgeable buyers directly order used cars from overseas - import shipping costs only 20,000-30,000 yuan.

[MaggieFitz]

My uncle works in car customs clearance, and his breakdown is crystal clear. Take a 400,000 RMB imported car as an example: the CIF price is 200,000 RMB, customs duty is 50,000 RMB, consumption tax adds another 30,000-80,000 RMB based on engine displacement, and VAT is levied on top of that. Then there's the 3C certification cost of over 10,000 RMB per vehicle, plus transportation and logistics costs of about 20,000 RMB. The dealership also needs to reserve a 15% profit margin, so the final selling price effectively doubles. Middle East-spec off-road vehicles are a classic example - a 300,000 RMB car in Dubai becomes 550,000 RMB in China, but it's still 70,000-80,000 RMB cheaper than the China-spec version.