The absurb prices of many cars in China, in particular supercars and Ferraris, has Chinese officials scratching their heads as rumours of illicit trade practices emerge. As we well know, China is home to some insanely priced Ferraris with the Ferrari 458 Italia for example costing upwards of $720,000 in top-specification. You can purchase the same car in the U.S. for around $230,000.
Automakers unsurprisingly blame the 25% import tariff, 17% value added-tax and a consumption tax for the dramatically higher prices. However, the China Automobile Dealers Association (CADA) isn’t quite convinced and is working in conjunction with the National Development and Reform Commission to possibly unsurface price-fixing.
CADA deputy secretary-general Luo Lei said, “We see there’s a big difference in the prices of imported cars in China and their overseas prices. We’re looking into that.”
Suspicions of illicit trade practices have heated up further in recent months as China has moved to stop purchases of luxury foreign auto brands by state officials possibly to promote the sale of local brands.
While supercars can cost significantly more in China than other countries, your regular run-of-the-mill cars can also cost twice as much in China as the United States, for example, the Audi A4.
While China does indeed suffer some pretty insane supercar prices, numerous other countries are in a similar position and see significantly more expensive cars due to local taxes. For example, Japan, Singapore and even Australia.