China now dominates the electric vehicle world with BYD Auto, SAIC Motor, Great Wall Motor, GAC Group, Geely and more. As part of China's efforts to reduce pollution, they are promoting the purchase of electric vehicles (EVs) by implementing several policies and incentives to encourage the production and purchase of electric vehicles.
Tesla cars are becoming more popular in China, although local EV brands are catching up. They created an electric car subsidy program that drastically reduced the cost of buying one of those cars. The Chinese government has also drafted laws to exclude electric vehicles from certain taxes and registration fees, making them more affordable.
China has also simplified the registration process for electric vehicles. Unlike other cars, which in some cities must go through a license plate lottery system, electric cars are often exempt. Buyers of electric vehicles can get license plates faster and easier. Cars in China are not cheap.
But the price of imported cars has dropped significantly in recent years. Imported vehicles are subject to value added tax, consumption tax (CT) and customs duties. They make up from 25% to 70% of the cost of the car, depending on many factors, from country of origin to engine size. Choose a car in China based on your needs and budget. However, import taxes on foreign cars are being reduced every year, and imported cars in China are much more affordable than in the past. In 2018, China reduced import duties on cars from 25% to 15%. However, this is not the case for US vehicles, as China imposed an additional 25 percent tariff on U.S. imports in 2019.
Chinese-made cars tend to be more profitable than imported cars because they are taxed much less. Some Chinese car brands include Geely, Haval, Wuling, Changan, Baojun, Chery, BYD, Roewe, Great Wall and many more. Great Wall Motors is on track to compete with Tesla by making the most affordable electric vehicles in its lineup.
Authorized dealerships are the first choice of most people when buying a new car in China. They are owned and operated by car manufacturers or affiliated companies. They simplify the process, guarantee authenticity and transparency (with respect to China), and they help VKM throughout the process. You can find dealerships by searching for the car brand you are interested in on Baidu Maps (Google is mostly useless in China). You can search in English, but it's good to have the Google Translate extension in your browser (Chrome is great for this). The internet is now a legal option for buying a car in China.
E-commerce platforms such as Tmall, JD.com or Alibaba now have official car manufacturers' online stores. Just make sure they are verified. There are also car supermarkets in China. Retail brand Suning says it will open more than 100 auto supermarkets across China in the coming years. These supermarkets have several brands under one massive roof, making it easy to compare and choose between different models.
Car dealerships are another place where big spenders can go shopping for the latest car models in China.