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In just five years, China has replaced the United States and become the "price depression" of the global auto market!

In just five years, China has replaced the United States and become the "price depression" of the global auto market!

For a long time, North America has been a price depression in the global car market, and before 2020, cars above $20,000 (unlimited displacement) in the United States were cheaper than in China. Especially for some luxury brand models, at that time, domestic car fans were envious of Americans, not only the income was higher than ours, but also the price of the car was so much lower than ours.

In just five years, China has replaced the United States and become the "price depression" of the global auto market!

For example, the price of a new BMW 5 Series 528Li with an entry-level configuration is $50,000 for the U.S. model and 450,000 yuan for the Chinese model, equivalent to $67,000. Slightly calculated, it is about 34% more expensive than the same product in the United States, nearly 1/3 higher.

Another example is Audi A4, the manufacturer's guide price is 299,800 yuan (equivalent to 44,000 US dollars), which is a lot higher than the United States' 34,900 US dollars (equivalent to 237,320 yuan), and the configuration is also lower.

In just five years, China has replaced the United States and become the "price depression" of the global auto market!

The price difference between the ultra-luxury brand models is even greater, with the price of the BMW 760Li starting at 2.5635 million yuan in China, while the price in the United States starts at 864,700 yuan (141,200 dollars), and the price difference between China and the United States has reached 1.7 million yuan (RMB)

Range Rover Sport, the price in China starts at 1.98 million, the price in the United States starts at 489,600 (79,995 dollars), and the price difference between China and the United States is as high as 1.5 million yuan (RMB).

From this, it can be seen how big the difference between China and the United States is to buy a car, and this is still in the case of exchange rate conversion, if the purchasing power is calculated, the gap will only be larger.

In just five years, China has replaced the United States and become the "price depression" of the global auto market!

The main reason is that the United States is the most competitive car market, in the case of extreme involution, for car companies, price reduction is the only choice, another reason is that the domestic consumption tax and emission tax are relatively high, displacement of more than 4L car, tariff 25%, consumption tax 40%, value-added tax 13%, car purchase tax 10%. If the U.S. sells for $50,000, the CIF price in China is also $50,000, and the pre-VAT price is 5*1.25/(1-40%)=10.42, and if the dealer increases the price by 10%, the selling price including tax should be: 10.42*1.1*1.1*1.13=$142,400. The exchange rate is calculated at 6.5, which is about 925,800 yuan.

In just five years, China has replaced the United States and become the "price depression" of the global auto market!

But ah, in today's domestic auto market, the situation has changed dramatically.

Needless to say, the Model Y in China is Tesla's lowest priced region in the world. The Model Y is positioned in North America in line with the Porsche Macan, which costs nearly 600,000 yuan in China, and the Model Y is less than half the price in China. In the case of extreme involution in China, the pricing of domestic new energy vehicles is not high, at least compared with foreign countries, taking BYD as an example, the pre-sale price of Yuan PLUS Germany is 38,000 euros, and the pre-sale price of Han and Tang Germany is 72,000 euros, of which Han and Tang are equivalent to more than 500,000 yuan, and the price is far more than domestic. We enjoy the best new energy vehicles while paying the lowest prices.

In just five years, China has replaced the United States and become the "price depression" of the global auto market!

Even gasoline vehicles are currently being significantly reduced in price. "130,000 to buy BMW", "220,000 Mercedes-Benz C series", "more than 30 car brands to reduce prices"...... Since Dongfeng Citroen fired the "first shot" of fuel vehicle price reduction, major brand cars have joined the price reduction army, although these price reductions are not all true, but you look at the price of the joint venture intermediate car, Camry dropped to 140,000, Passat dropped to more than 130,000, before this is the price of the joint venture compact car high configuration, now it is the entry price of the joint venture intermediate car, from which you can see that the domestic car market has a lot of volume. This year, the penetration rate of new energy vehicles has exceeded 40%, and for fuel vehicles, they can only reduce prices to barely maintain market share.

It is no exaggeration to say that the current Chinese auto market has replaced North America as a price depression in the global auto market. Previously we envied the Americans for being able to buy cheap and good cars, and now it is their turn to envy us.

In just five years, China has replaced the United States and become the "price depression" of the global auto market!

The rise of domestic new energy, directly the price of joint ventures and imported models collapsed, before the high joint venture brand, had to bend down, to embrace consumers, whether you like new energy vehicles or not, support domestic car brands, you have to admit that this is the positive effect of domestic new energy vehicles, it benefits every domestic consumer.

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