Beijing's Hybrid Hypocrisy

Here in the Hutong we are looking for ways to lower our carbon footprint while enjoying the conveniences of modern life. Tired of driving a car that is getting too small for the family, not wanting to own two cars, wanting a tough vehicle, and at the same time seeking to lower our carbon footprint, our natural instincts are to look for a vehicle that will give us more room and yet move us to a more sustainable lifestyle.

Despite all of the hype at the Shanghai Auto Show earlier this year, there are not a ton of options out there. The Toyota (TM) Prius is too small, so that was out. Our eyes naturally reached the Lexus RX400h as being a pretty good combination, an SUV with a hybrid drive.

Until, that is, we saw the price. For a car that fetches around $43,000 in the U.S., the dealer in Beijing was quoting us RMB 816,000, a tidy US$109,156. Trying very hard to make a sale, the dealer hinted that the standard RX400, without the more environmentally-friendly hybrid drive, could be had for around RMB 700,000, or a full US$16,000 less.

Is there a price difference between the two vehicles? Certainly there is - somewhere around $4,000, if US prices are any indication.

But what this means is that in China, in a nation where air pollution caused by automotive emissions is becoming a serious threat to public health, an environmentally-conscious car buyer is taxed by the government an extra 16-20% for wanting to make a better automotive choice.

Clearly, somebody very senior in government is not thinking this through.

Granted, from a policy standpoint, the fewer cars with large engines that are on the road, the better. And, from the same standpoint, the more domestically-produced cars (rather than imports) on the road, the better. This is the reason that imported cars with engines larger than 3 liters are already subject to a whopping 100% tariff.

But if someone is going to buy that imported vehicle, from an environmental standpoint it makes more sense to do everything practical - up to and perhaps including actually subsidizing that purchase - to encourage the consumer to make the right choice. At the very least, you would not want to penalize the buyer any more than the actual cost differential of the vehicle.

I cannot believe the problem is with the environmental bureaucracy. This sounds like a simple case of the General Administration of Customs doing their jobs and collecting as much money as possible for imported vehicles. To bring about a change, somebody very senior in government needs to get involved.

This sounds like something that, if the large automakers handle correctly, could redound very much in their favor, both publicly and among their dealer community. What I suspect, however, is that the major hybrid-makers (Toyota, Ford (F), GM (GM), Honda (HMC)) are not interested in fighting this battle.

The big question is - why not?

Comments

[rlirph]

Mr. Wolf seems to forget that he is in a foreign country, at best a Third World country. Things in foreign countries are not the same as in the U.S. If Mr. Wolf does not like how things are he is certainly welcome to leave even though this is a Communist country.

Being a US citizen myself I many times are embarassed at the outrageous behavior of my country man. I am not implying that Mr. Wolf is an American. I am saying that Mr. Wolf is exhibiting behavior by US citizens traveling abroad. We do lack the consideration, tact, and thoughtfulness that other foreigners have (especially the Europeans and certain Asians).

If Mr. Wolf is in China on business he should be thankful that he is employed to work on behalf of his company. If China is as well developed as US I doubt that he would still have his job.

[kindwarrior]

I suppose it's going to be impossible not to offend with this but as soon as I saw the term "Carbon Footprint" you lost all credibility with me. You may want to bury such group think non-sense deeper in your articles if you want to be taken seriously.

[SiliconHutong]

Anonymous: you miss the point. I guess I wasn't clear, and I apologize for that. The problem is not the price concession. The problem is that the same vehicle with the Hybrid drive sells for $16k more than the standard-drive vehicle, when the LIST PRICE difference in the US is only $4k, AND that at least $6k (and possibly all) of that difference is because of taxes and import duties on the price difference of the hybrid drive.

[SiliconHutong]

Rlirph:

I absolutely agree that any US citizen traveling or living abroad needs to be tactful, thoughtful, and considerate.

I absolutely disagree, however, that this means we have no right to critique policies or practices that run counter to China's best interests. I believe it is my obligation - and that of all of us who love China, live here, invest our sweat-earned dollars here, respect her people, and deeply appreciate what she has accomplished in a very short time - to serve as a "loyal opposition," to point out areas where China can improve its policies if those policies will improve the lives of all Chinese and improve China's standing in the world, this making this a better place for everyone.

We are doubly obliged given that Chinese themselves lack the political mechanisms do do so themselves. Given that foreigners who have spent their lives here, contribute positively to society, speak the language, and understand the culture are regularly consulted on issues like this by Chinese, it is a role we are expected to play.

To do otherwise (under the guise of "good manners"), to see no evil, hear no evil, and keep our mouths shut about the problems we see is to give lie to the idea that our presence here can help improve things. In that case, we all might as well pack up and leave.

To tell China to change "just to be like us" is wrong. You and I agree on that.

But if those of us who know a little something about this place don't say anything when we see something wrong, we condemn China to remaining a third world country. Or worse.

Join the loyal opposition. By doing so you will join a long line of foreigners who have helped China overcome its challenges.

[User 249550]

Hi,

The attitude of "rlirph" is very interesting...
I will make it short.
I live in an Asian country since 1995 and I am traveling to china on a regular basis.
What I have noticed in 13 years is that in these countries a lot of WESTERN foreigners ( whatever their country of origin : Europe or the US ) become more chinese ( I got an exemple recently ) than the chinese or more .... than the..... !
Usually when you start to speak about their new country of adoption in a way they do not like their reaction is straigthforward : " go back in YOUR country " !
Their attitude could be probably well explained by a psychiatrist. For me their are just...treators !

JACK.

Apologies for my bad english.