It might be smart to act quickly when looking for a new Tesla in China.
But there might be another price hike in December when Chinese tariffs on U.S.-made cars take effect.
"Reuters reported this month that Tesla was considering to lift prices in China from September after the yuan weakened significantly against the U.S. dollar. One person told Reuters on Monday that the automaker was bringing forward these plans to Aug. 30.
Both people said the automaker is now also mulling another price hike in December after China’s commerce ministry last week announced it would reinstitute tariffs of 25% on vehicles and 5% on auto parts which it suspended in December, in the latest tit-for-tat escalation of the trade war."
One of the ways to minimize the impact of the 25% import tax (up from 15%) might be deliveries of a higher number of cars to China before December.
In 2019, Tesla should be able to produce base versions of the Tesla Model 3 in volume locally, which also will help.
Tesla is not the only manufacturer affected by the Chinese-U.S. tariffs. Brands heavily dependent on imports will suffer, especially since the Chinese automotive market is shrinking.
Chinese import tax on cars from the U.S.:
- For a long time it was 25%
- Decreased to 15% for a while in 2018
- Increased by 25% in July 2018 and then to 40% because of the trade war with the U.S.
- From December 3, 2018 temporarily decreased to 15%