Tuesday 28 February 2012

China Removes Audis and BMW Cars from Official List

THE DAILY TELEGRAPH: When driving in China, it is easy to spot government officials: they are the ones in the luxury German saloons, usually with blacked-out windows.

Each year, the Chinese government spends roughly £8 billion on buying cars, and owns more than five million, and until now Audis and BMWs have been the marques of choice for officials in all but the most remote villages.

Now, however, the government appears determined to stop the trend. A draft list of 412 car models permitted for procurement has no foreign cars on it at all. Most of the cars, indeed, are relatively small and cost under 180,000 yuan (£18,000), roughly half the price of an Audi A6.

In Beijing, Audi dealerships said they had not yet heard the news.

Audi, however, depends on the Chinese government for one-fifth of its sales in China.

The car has become so ubiquitous as a symbol of wealth and privilege in China that half of the world's Audi A6s are sold on the mainland. » | Malcolm Moore, Beijing | Tuesday, February 28, 2012