Luxury Cars—China: As China-US Trade War Starts to get out of Hand, BMWs Production Shift to China Pays Off

Albany, US, 2019-Aug-19 — /EPR Network/ —Amid escalating trade war jitters between China and the U.S., new generation of Chinese consumers vie to foster the luxury cars market. Luxury segment remains vibrant as premium cars outperform the wider market as Mercedes, BMW and Audi earn major chuck of their global profits from China. These insights are according to the intelligence report, titled, “Luxury Cars—China—June 2019,” which has been freshly added to Market Research Hub’s (MRH) overarching armamentarium. Import tariffs cut on automobiles and automotive parts from non-US sources effective from July 1, 2018 has had positive impact on luxury cars. Selected luxury automobile brands such as Porsche, Maserati, Ferrari and Lexus are set to reap reward as these brands are fully imported from non-U.S. factories. Imminent retaliatory action may propel the local production of models in China. Accordingly, international automakers in the U.S. may contemplate shipping cars from non-US factories or shift some of the production to China to duck the steep tariffs.

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Donald Trump stunned the financial market as he is likely to impose 10% tariffs on the remaining $300 bn of Chinese imports from September 1 2019, thereby breaking cease fire in an ominous looking trade war that has slowed growth and created mayhem in global supply chains. Belligerent trade war also prompted Tesla to explore producing its cars in China.

Mercedes Benz and BMW ship unprecedented numbers of cars from their U.S. factories to China. Nevertheless, BMW’s production shift to China has paid off as BMW AG reported a 33% sales rise in China during May.

Manufacturing the X3 locally has helped the company avoid a 15% Chinese import tariff on cars which were shipped in from BMW’s plant in North Carolina. Nonetheless, China ephemerally hiked tariffs on U.S. made cars to 40%. BMW is in a stiff competition with Mercedes-Benz in battle for supremacy in the luxury segment.

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Luxury Cars—China: Report Content

Quantitative and qualitative assessment exhort intelligence and overarching report on the luxury cars—China market. Further, the report thoroughly delineates various aspects of the market that will potentially have considerable influence on the development of the luxury cars—China market. As such, those aspects incorporate drivers, trends, restraints, and opportunities. Furthermore, the report elucidates segregation of the market that provides an exhaustive analysis on luxury cars—China.

An insightful and deep-dive assessment of the competitive assessment of the luxury cars—China market pins hope on Porters’ Five Force Analysis. Accordingly, the Porters’ Five Force Analysis offers a pressing analysis on the potential strategies of the preeminent players in the luxury cars—China market. In addition, the business strategies counts on company overview, product portfolio, SWOT analysis, key differentiation and recent development.

Luxury Cars—China: Research Methodology

Primary sources and secondary sources propel intelligence report on luxury cars—China market that provide deep dive analysis on the market. As such, the report provides reliable and unbiased projections, and assessments which have palpable impact on the market size and historical data. Besides, the report also counts on primary sources which hinges upon in-depth and intelligent analysis from well-grounded and reliable experts, telephonic interview, and a thorough assessment from surveys and seasoned analyst. Report on luxury cars—China market further acknowledges secondary sources—namely—Factiva, EC filing, press release, trade journals, resourceful database and governmental websites

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