South Korea made BMW, Mercedes, and Audi’s life easier by passing certain laws to help reduce the price of European vehicles, another law in Asia might do the opposite.

In 2011, South Korea implemented a trade pact agreement that has helped European car makers offer ever more cheap cars.

All these vehicles have seen a dramatic drop in duties, from 8 percent to 3.2 percent. And it seems that next year South Korea will eliminate them for the vast majority of other vehicles. Starting in 2016, taxes will be cut down for all American passenger cars.

But how all these taxes reductions translate into today’s market? Well, the new climate allows BMW to offer prices that can compete with local manufacturers like Hyundai and Kia.

Things are going so well, that BMW even looks to invest into a race track to be built in Incheon, costing an estimated 70 billion WON (62 million USD). The track is built with the purpose of test driving your car at high speeds, pulling in even more buyers.

China is set to implement a new law that will increase the taxes of luxury cars.

The new law will affect cars priced over 1.7 million yuan or 275.000 USD. All premium car makers stand to suffer losses because of this law, especially the German giants like BMW, Audi or Mercedes-Benz.

It’s a special concern for BMW as China at the moment is the biggest market in the world, having surpassed USA. The new law will make the affected vehicles, who already bear a high price tag, 20% more expensive. The silver lining in this matter might be the fact that the analysts estimated the affected vehicles are produced in lower numbers, 5000 units each year for this segment.

While the Chinese market as a whole won’t be that affected by this new law, European car makers are still hoping it won’t be implemented.