Knight Investment Limited – BMW to Raise SUV Prices in China as Much as 7% Due to Tariffs

HONG KONG - July 30, 2018 - PRLog -- As the back and forth row over trade between the US and China continues, BMW, the German automaker has said it intends to raise the price of some mid-sized sport utility vehicles in China by as much as 7 percent beginning Monday, in a further rippling of the U.S.-China trade war through the global supply of products.

The carmaker, which builds the vehicles in Spartanburg, South Carolina, said Sunday it would increase its suggested retail prices for X5 and X6 models in China between 4 percent and 7 percent. In 2017, BMW exported more than 81,000 U.S.-made SUVs valued at $2.37 billion to China, the biggest market for its American exports.

Knight Investment previously reported on BMW and Brilliance Auto's latest joint venture, which secured the German and Chinese automakers relationship, solidifying their commitment to BMW electric vehicles and increasing capacity at the local plants.

U.S. President Donald Trump has imposed duties on billions of dollars in Chinese imports and has threatened more, prompting retaliatory measures from Beijing. The effects are rippling through various industries, including soybean farms, industrial chemical manufacturers and even lobster trap-makers in the Northeast.

BMW exported about 272,000 vehicles from the U.S. last year, compared with 202,000 models it imported.

Whilst the move from BMW could be seen as reactionary, it is important to point out that the Chinese auto industry is one of the key markets for many European manufacturers and if a trade war does indeed happen, we can expect the larger automotive companies to look to circumnavigate the import tariffs by looking to partner up with domestic automotive companies within China.

BMW and Tesla specifically have already made significant inroads in the Chinese market by strategic partnerships and investment plans on the mainland and Knight Investment expects to see more auto makers deploy the same tactics should the US continue to shake up trade globally.

To find out more about Knight Investment Limited and the opportunities it sees within the Automotive sector, among others, contact us at info@knight-investment.com or visit our website www.knight-investment.com to find out more about their services and products available.