Hot-selling big cars have price up as tax rises

Shanghai, September 1 (Gasgoo.com) With the sales tax on big cars to rise on September 1, most of the fuel-guzzling cars of hot-selling brands have seen their prices increase as well, said Beijing News today. However, the price is likely to rise higher after the tax hike on big cars took effect today.

BMW 7 series, Benz S350, Toyota Prado, Ferrari and other hot-selling models have had their prices marked up, though the prices have not grown so fast as the sales tax. Meanwhile, some vehicle models that are not well-received in the market and have huge inventories are selling at the usual price, but it remains to be seen whether these cars will also have their prices up in the months ahead to meet the raised sales tax.

About two weeks ago, most cars with 3.0L or larger engines began to sell at a price about 80,000 yuan ($1,170) higher than before. Audi A8L 3.2L standard and luxury cars used to sell for 950,000 yuan and 1.04 million yuan respectively, now they are selling for 1.02 million yuan and 1.12 million yuan, and are expected to sell for 1.045 million yuan and 1.144 million yuan after the sales tax on big cars of this size rose by 10% from now.

While the prices of German cars, imported or China-made, have risen by about 80,000 yuan, the Japanese SUVs for sale in China have their prices up by 40,000 yuan. The selling prices of Toyota FJ, Toyota Highlander and Toyota Prado SUVs have all risen by more than 40,000 yuan, with the 3.5L Highlander SUV now selling for 420,000 to 510,000 yuan.

Chrysler 300C 3.5L and 5.7L models, previously sold at a discount of 20,000 yuan, and other 3.0L-plus models on special offer will get their prices back to normal from September 1 to balance the higher sales tax levied on big-engine cars.