Hello,
A quick note today about how to actually buy a BMW motorcycle in China, and what some of the regulations are that you need to know about before undertaking such a venture.
It was back in June 2010 that I decided to purchase a motorcycle, to ride around my home town of Shanghai, and throughout the countryside in China. But I didn't know where to start, and whether it was even possible.
My first step was to visit the BMW Motorrad International website, and found a country link there to the BMW Motorrad China website. From there I contacted there office and got the low-down.
First of all, China has an actual law that says all motorcycles over 250cc are illegal. The reason for this is because a decade ago major cities like Guangzhou and even Shanghai had a massive increase in crime whereby big bikes were used as get-away vehicles. Everything from robbing stores to snatching handbags. So the government simply banned them. Things for a few years were bleak, but there have always been bikes making their way up from Hong Kong and sold on the black market. Just three or four years ago the government began moving in a different direction, a chance to test new waters; and those in power started allowing Harley Davidson and BMW to export bikes in to China, under carefully monitored joint ventures, and sell them to Chinese enthusiasts (and people like me).
Why are Harley and BMW the supposed "chosen one's"? Well, there are stick emissions controls on imported vehicles and BMW and Harley have had to fine tune bikes for China, no easy task - but a task they felt was worth while and essential for long term brand building. So, essentially "made to order" bikes are available in Shanghai and Beijing for those who have the cash. But wait, this is not small purchase.
Everything that is imported to China, anything not actually built in China, has a tax on it. Consider it an official tariff, often set up to protect local industries. Tax rates vary from 20% on some electronic equipment to 60% on some cosmetics. Beyond the regular tariff is the king of all tariff's, or the LUXURY TAX. I put it in bold, because it's a bloody scary prospect. A Luxury Tax is levied on anything the government decides to be above and beyond ordinary consumption. So if you want to by a US$85,000 Porsche, well in Shanghai that same Porsche will cost you US$170,000. That's right, the Luxury Tax is often 100% of the book value of the product, and it is most often levied on automobiles as a way of protecting the growing Chinese automobile sector.
Sadly enough, BMW motorcycles somehow also fall under this category. So the Luxury Tax will push a US$12,000 BMW motorcycle to US$24,000; and if you choose your own options, will take up to three months for arrival. Messy but true.
So this is the path I have gone down. I've purchased a new BMW F800GS from the Beijing head office for BMW China. The bike should arrive in Shanghai the first week of November, about the same time I get licensed. All that remains is the bike registration and license plates, which will most likely be my next blog.
A few friends have asked me how I could rationalize paying double for my bike, but in my mind it's easy. First, I've lived in China for almost a decade, and I'm most likely going to live hear at least a decade longer or more. The Luxury Tax is a big earner for the government so I doubt their going to give it up anytime soon; so I will have to accept their rules if I want a new "legal" bike. The second is that it's a BMW, and it's China. Imagine the possibilities. If I ride my F800GS for a decade and put a couple hundred thousand kilometers on it then it will have all been worth the fuss; and what a journey it will have been. So I am biting the bullet now, and just getting on with the process. And I intend to document the journey's and continue blogging throughout.
As a final note, it is important to know that black market bikes sold in China are not legal, meaning if you get caught or in to an accident there can be serious repercussions. But if you are only interested in city riding and a bit of bumbling about in the countryside then you might actually be okay. But if you want to travel with your bike, to places like Mongolia and Vietnam, as I do, then you need to make sure you get a legal version; and that it is properly registered with the proper paper work. But wait, isn't all that stuff easy to fake? Isn't this China we are talking about here? Will, actually a lot of things are easy to fake, but this is not. Vehicle registration is taken pretty seriously in China, and having my baby (F800GS) impounded would leave me in a mode of permanent depression. Too much to risk? Perhaps. But I've always been a "by the books" kind of guy.
Stay tuned. It won't be boring.
Ryan Pyle
Photographer / BMW Motorcycle Owner
Location: Shanghai, China
Email: ryan@ryanpyle.com
Website: www.ryanpyle.com
Mobile: +86 137 9521 9650
BMW China: BMWCHINA
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