High prices fail to dampen Chinese obsession with Range Rover

Chinese enthusiasm for Jaguar Land Rover vehicles shows no signs of abating as retail prices in China soar, with certain models priced at over three times more than in overseas markets.

Numerous private retailers in Beijing have recently sold out of some high-end Range Rover models despite hefty prices.

Luxury vehicle manufacturer Jaguar Land Rover recommends a retail price equivalent to between HK$1 million and HK$1.3 million for its new Autobiography V8 model in its major overseas markets including the United States, Germany and Japan.

But its recommended retail price in China is a hefty 2.79 million yuan (HK$3.5 million), approximately three times the price in other major markets. And some private retailers may add as much as a further 400,000 yuan, China Youth Daily found, bringing the total price to over HK$4 million in Beijing.

Excluding import tariffs, transportation costs, various taxes and storage fees, which total approximately 2 million yuan, the profit margin is still 1.2 million yuan (HK$1.5 million).

While private retailers are permitted to include a modest extra charge on car sales, media reports have revealed many retailers have set prices as much as 300,000 to 400,000 yuan over the manufacturer’s recommended price.