During last weekend, some consumers may found out that the sticker price of some imported models was slightly higher.

 

Actually this round of price change is mainly influenced by the exchange rate fluctuation. To put it in an easy way, the devaluation of RMB will increase import costs and export margins. So the price change of some imported models, which are settled with USD, is easy to understand.

 

Car prices are often decided with many factors. As a comprehensive assembling business, the auto industry will never stand alone, insolated with the rest of the world. Under the influence of strong dollars currently, the cost for Chinese companies to import both finished automobiles and core parts will increase, which could lead to a higher selling price of both imported and domestic models.

 

Statistics of China’s Passenger Car Association also shows the price of imported models in China may be influenced by the strong USD. But consumers will not very likely to see a huge price change, because 80% of imported brands had all set up their subsidies in China and agreed to settle in RMB with a 1 year term. Besides, the dealers of imported cars have also applied abundant financial instruments, in a bid to tackle short-term fluctuation.