Whether car export makes money depends on a complete pricing model. Many traders only count "car price + freight", ignoring certification, duties, capital costs and FX swings — the more orders, the bigger the loss. Here is a repeatable pricing framework.
1. Cost Breakdown
| Cost item | Notes | Share (ref.) |
|---|---|---|
| Vehicle purchase | VAT-inclusive invoice price | 70-80% |
| Logistics | Sea/rail/road + insurance | 8-15% |
| Duties & taxes | Import duty, VAT, surcharges | 5-25% |
| Certification | EAC/GCC/local + testing | 1-5% |
| Capital & FX | Interest, FX swings, fees | 1-3% |
2. Pricing Strategies
- Cost-plus: Total cost x (1 + target margin); best for first orders and trials.
- Market benchmark: Work back from local retail prices of competitors; best for mature markets.
- FX hedging: Lock exchange windows or invoice in RMB to avoid volatility.
3. Profit Example
Example: an SUV purchased at CNY 100,000 exported to Russia:
| Item | Amount (CNY) |
|---|---|
| Purchase price | 100,000 |
| Logistics + insurance | 12,000 |
| Certification + misc | 6,000 |
| Capital + FX | 2,500 |
| Total cost | 120,500 |
| Target price | 135,000 (12% gross margin) |
Shunwei Auto tip: Build a "total cost pricing sheet" and re-quote whenever FX or duties move beyond thresholds.
Warning: Tariffs and recycling fees change frequently in Russia and the EU — always get the latest rates before quoting.
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