Lexus in China
#1
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Lexus in China
Ok...Just got back from Beijing with family. The last time I went (2001) there were not too many nice cars. This time, however, people are driving nicer cars because of the improved economy and standard of living. Because Volkswagon was the 1st brand to enter the country back in the 80s, it is the most recognizable car brand, and most middle class car-owners own a VW. There are lots of Hondas and Toyotas running around, and most of them are assembled in China. Basically it's japanese technology with a lower price tag, which attracts many buyers. Because of the 75% foreign luxury car tax, you gotta be really wealthy to drive a fully overseas-assembled S550 or LS430, etc, especially since the Chinese don't believe in automobile financing.
Anyway, I was looking for the ES350 of course. Found 2 of them. Also found 2 of the 2006 GS300. Same options as we have here. Fully assembled in Japan. The ES350 starts at $55,000 USD before tax (Premium plus package). So I'd imagine the UL would be about $120k after tax. Quite a lot a money considering the average executive white collar earns $10,000 USD a year over there. When I told my friends there that I drive a UL ES350, they were really impressed.
Overall I was very impressed with the rapid growth of the economy and infrastructure over there. You can still find lotsa bargains in China. I got a pair of genuine grey-market Nikes for $7. A full 12-course banquet dinner for 12 people for $70. A 100-minute spa massage for $10. But if you want foreign or luxury goods, it's gonna cost a premium. Small Starbucks frappacino for $5. Ralph Lauren Polo shirt for $120. Japanese assembled Camry for $50,000 after tax. Apple Ipod nano for $400. YIKES.
It was a really good trip....a real eye-opener. I'd be happier if I could drive my ES350 over there. Maybe in a few years prices will drop over there. Who knows.
Anyway, I was looking for the ES350 of course. Found 2 of them. Also found 2 of the 2006 GS300. Same options as we have here. Fully assembled in Japan. The ES350 starts at $55,000 USD before tax (Premium plus package). So I'd imagine the UL would be about $120k after tax. Quite a lot a money considering the average executive white collar earns $10,000 USD a year over there. When I told my friends there that I drive a UL ES350, they were really impressed.
Overall I was very impressed with the rapid growth of the economy and infrastructure over there. You can still find lotsa bargains in China. I got a pair of genuine grey-market Nikes for $7. A full 12-course banquet dinner for 12 people for $70. A 100-minute spa massage for $10. But if you want foreign or luxury goods, it's gonna cost a premium. Small Starbucks frappacino for $5. Ralph Lauren Polo shirt for $120. Japanese assembled Camry for $50,000 after tax. Apple Ipod nano for $400. YIKES.
It was a really good trip....a real eye-opener. I'd be happier if I could drive my ES350 over there. Maybe in a few years prices will drop over there. Who knows.
#2
Well, it promotes and boosts the local economy I suppose by having things assembled in China rather than overseas. You do get what you pay for though. My friend said that all those taxis that chinese-made are using really really old Mitsubishi engines (circa 95). If I had to guess, it's probably the 1.6 litre from the Lancer. Also, he said that the A6 and 5 series over there are nothing like what we know as the A6 and 5 series over here (and the rest of the world). IOW, it's just the name and the design. The materials are supposedly lower in quality.
Is that true?
Is that true?
#3
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The locally assembled vehicles are indeed lower in quality. They use many local parts, and import the rest. I would guess the cars that are assembled in China are louder, windier, and rougher than their foreign counterparts. Technically, any 5-series that are assembled in Germany should be the same no matter where the vehicle is shipped. My guess is that the difference is due to local requirements and/or cost cutting. The S500 I rode in China was exactly the same inside/out as the one I rode in the US. However, the Hyndai Sonata taxis I rode there were a lot rougher than the Sonata I test drove here. I guess it all depends. There are models there that we don't see here, like the Nissan Teana and the Ford Moderna. The local assemblers do not try to deceive. The Accords that are locally assembled are labeled "GuangZhou Honda" on the left side of the trunk lid. No confusion.
#4
Lexus Fanatic
Kaius, interesting write-up on your recent trip to Beijing. I too have been fascinated with the news of autombobile making in China. With the population continuing to grow and the economy improving with their wide selection of commodities, it's going to be amazing to watch the outcome of the automobile industry in China within 5-10 years from now.
I can relate to the quality of the VW brand in China as my family and I traveled to Shanghai 3 years ago. We rode around in a few of the VW taxis there, and let me tell you, those things are one of the roughest cars to ever ride in. Brakes were very bad, wind noise is very noticeable, and it just did not feel comfortable at all. BTW, did you encounter a lot of traffic in Beijing? Traffic was horrible in Shanghai as nobody follows the "yield to right-of-way" concept, but I understand that's considered part of life over there. At any rate, I'm planning to go back to Shanghai next Feb. with my wife, and would love to visit Beijing sometime in the future
I can relate to the quality of the VW brand in China as my family and I traveled to Shanghai 3 years ago. We rode around in a few of the VW taxis there, and let me tell you, those things are one of the roughest cars to ever ride in. Brakes were very bad, wind noise is very noticeable, and it just did not feel comfortable at all. BTW, did you encounter a lot of traffic in Beijing? Traffic was horrible in Shanghai as nobody follows the "yield to right-of-way" concept, but I understand that's considered part of life over there. At any rate, I'm planning to go back to Shanghai next Feb. with my wife, and would love to visit Beijing sometime in the future
#5
Well, it promotes and boosts the local economy I suppose by having things assembled in China rather than overseas. You do get what you pay for though. My friend said that all those taxis that chinese-made are using really really old Mitsubishi engines (circa 95). If I had to guess, it's probably the 1.6 litre from the Lancer. Also, he said that the A6 and 5 series over there are nothing like what we know as the A6 and 5 series over here (and the rest of the world). IOW, it's just the name and the design. The materials are supposedly lower in quality.
Is that true?
Is that true?
One of the main reasons why it is such is because our govt wants to protect the local car manufacturer's and I feel this is bad to an extend because the local car manufacturer's will not improve their quality until or unless they face are tough competitions.. It is more like a monopoly..I am sure this must be one of the reasons in China as well.. (Maybe not)
Adios..
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A little off topic... I am from Malaysia and we don't have a Lexus brand as of yet but we have everything else from BMW, MERC, Porc, Ferari and many more, but these cars are so expensive in Malaysia as compared to US. The Malaysian government charge over 250% in taxes for these cars. Eg, a camry here would costs 21K and the same Camry in Malaysia would costs $49,315 and if you are talking a Bmer 3 series it is +/- 93K.. so if a Malaysian drives a Bmer or Merc.. he/she is stinking rich.. cause the rich would still not prefer these cars except for the richi rich.. (reason you can get awesome homes for 93K)
One of the main reasons why it is such is because our govt wants to protect the local car manufacturer's and I feel this is bad to an extend because the local car manufacturer's will not improve their quality until or unless they face are tough competitions.. It is more like a monopoly..I am sure this must be one of the reasons in China as well.. (Maybe not)
Adios..
One of the main reasons why it is such is because our govt wants to protect the local car manufacturer's and I feel this is bad to an extend because the local car manufacturer's will not improve their quality until or unless they face are tough competitions.. It is more like a monopoly..I am sure this must be one of the reasons in China as well.. (Maybe not)
Adios..
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