BMW announced that they will raise the price of two US-made crossover utility vehicle in China in order to cope up with the added cost of tariffs on the US car imports into the world’s biggest auto market. BMW issued the statement in association with this over that they will increase maker suggested retail prices of the popular and high margin X5 and X6 SUV models by 4% to 7%.
As per the reports, BMW decided this after China’s decision on the new tariff introduced earlier this month on about $34 billion (Dh 124 billion) of US imports. Along with these, Beijing cut the tariffs on all automobiles which are imported to China and slapped an addition 25% levy on the US made cars as of July 6 and thereby China now introduced a 40 percent import duty on all the cars imported from the United States. This also indicates the tariffs will cut the BMW’s profit margin on the vehicle and warned that it wouldn’t be able to absorb the cost of the higher tariffs.
BMW imports crossover SUV models including X4, X5 and X6 from the United States for sale in China where the demand for SUVs is increasing. As per the last year statistics, the German automaker shipped more than 100, 000 vehicles from the United States to China.