When Hong Kong’s former financial secretary Antony Leung Kam-chung announced a 150% increase in the luxury car tax (later reduced to 100%) he did so after buying a top of the range Lexus for himself, Access Asia noted.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

For this he faces possible criminal charges and is now out of government. Also, people expected luxury car sales to fall in Hong Kong given the poor economy, SARS and the new tax.

However, this appears not to be the case and the new taxes have had little effect on the top brands in the market, with Mercedes-Benz and BMW actually increasing their market share.

Mercedes-Benz reports that its share of the total private car market has increased to 11% – or 35,000 vehicles – and BMW’s share has risen to about 12.5%.

It seems it is the mid-sized market where consumers are delaying purchasing.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The term “luxury vehicle” applies to cars costing more than $HK500,000 in Hong Kong, Access Asia said.