Import tariffs on cars will be cut from July 1 onwards.

After levying the tariff and import adjustment tax in 1986, China made the 10th adjustment for auto import duties.

Since July 1, 2018, China will reduce the import tariffs on autos and auto parts. The vehicle tax rate has dropped to 15%, and the auto parts tax rate has dropped to 6%.

The person in charge of the Customs Tariff Commission Office of the State Council stated that taking the initiative to reduce auto import tariffs is the need for China to further expand its reform and opening up, and it is also a need for the auto industry to push forward with structural reforms on the supply side and transformation and upgrading.

Who do you want to buy if you want to cut prices?

Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, said that the reduction of tariffs to 15% will have a greater impact on luxury cars. Their import costs will drop by about 12%, and the preferential rate has reached 10%. The dealers are on preferential terms. There will be some reduction.

CIF = CIF + Import Duty + Import Consumption Tax + Import VAT

Depreciation of costs = CIF before tariff adjustment - CIF after tariff adjustment

A dealer of a luxury car brand said that the reduction of tariffs would lower the price, but it would adjust to the strength of the offer and should not be able to fight the price war.

However, after the tariff reduction, the major luxury car companies immediately adjusted the manufacturer's suggested retail prices of all imported models according to the actual impact of the policy.

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May 24, Mercedes-Benz announced that the original price of 229.98-378.88 million G-class AMG models reduced by 15.3-256,000 yuan, the original price of 13.18 million yuan G-class car down from the amount of 87,200 yuan, the original price of 238,800 yuan The A-class model will be reduced by 30,000 yuan.

On May 26th, Infiniti announced that the maximum reduction of the suggested retail price of all imported vehicle manufacturers reached 60,000 yuan, and the maximum adjustment rate was 7.6%. Among them, the original price of 1.189 million yuan QX80 price cut by 60,000 yuan to 1.138 million yuan, the original price of 189,800 yuan of ESQ 1.6L rate version of the price of 0.9 million.

In terms of new energy vehicles, Tesla has lowered its selling price by a total of 4 to 90,000 yuan. The original model price is as high as 83.6% to 1.413 million yuan. After this tax reduction, the guidance price is reduced to 77.56-131.56. Million. The Model X P100D with the largest drop was downgraded by 9.0021 million yuan in one breath. Although the price after the downward adjustment was still higher than the US market, the threshold for users to start Tesla was reduced to some extent.

In addition to new energy vehicles, SUV models have been favored by Chinese consumers in recent years for their advantages such as large space and passability. According to statistics from the CLUCC, the SUV sector completed sales of 753,000 units in April, an increase of 10.4% year-on-year, with sales of 3.265 million units in January-April, an increase of 9.5% year-on-year.

On May 24th, Volvo lowered the suggested retail price of all imported models. Among them, the biggest drop in the flagship luxury SUV Volvo XC90 was RMB 110,200, and there will be obvious price competitive advantage to compete with ABB's same model.

It is understood that Mercedes-Benz GLE price cuts 5.0-96,000 yuan, the price reduction ratio of 6.4% -6.7%; BMW X5 price cuts 5.5-60 million, price reduction ratio of 6.3% -6.9%; Audi Q7 price 4.88-67800 yuan, price reduction ratio 6.5%; while the Volvo XC90 cut its price by 5.12-10.02 million yuan, the price reduction ratio reached 7.5%. Compared with the ABB brand, Volvo has the largest price cut and the highest price reduction.

In addition to the above car companies, other luxury car companies have also lowered the price of some models.

What is the impact of the domestic auto market?

According to statistics from the China Association of Automobile Manufacturers, China's auto imports in 2012 were 1.261 million, which is only about 4% compared to the Chinese auto market with a sales volume of 28 million in 2017. In 2017, China imported 1.13 million passenger cars. Compared with the sales volume of 24 million vehicles in China in 2017, the proportion of imported passenger cars is only about 5%.

Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade Studies, said that the market positioning of domestic (including joint-venture brands) and imported vehicles is quite different. Even if the same brand of high-end cars of the same brand, the steps of listing of imported cars and domestic cars are different, competition is not So obvious. In addition, the proportion of imported cars is relatively small, and the impact of imported cars on domestic cars is limited.

"That is really not bad 50,000, the difference is the rest of the hundreds of thousands." Many people believe that despite the tariff cut, the price of some imported luxury cars have declined, but the total price of the car is still greatly beyond the budget. Buying a used car is obviously an option that can save the cost of buying a car. So, what impact does this tariff cut have on the used car market?

Chen Xiangda, part-time vice chairman of the China Automobile Dealers Association and chairman of the Chamber of Commerce of used car dealers, said that the implementation of this policy will have a certain short-term impact on the used car market, especially for high-end imported cars and imported used cars. Consumers may be Due to policy reasons, delaying the purchase of vehicles led to a certain degree of slow sales in the high-end imported automobile market before August.

According to the statistics of the China Automobile Dealers Association, in 2017, the trade volume of used cars was 120.09 million, an increase of 19.33% year-on-year; the transaction volume was 800 billion yuan, an increase of 34% year-on-year; in 2017, the average transaction price was 65,300 yuan. Compared with RMB 58.10 million in 2016, it increased by 12.39% year-on-year.

Luo Lei, deputy secretary-general of the China Automobile Dealers Association, also expressed similar views. He believes that the used car market in China will maintain a relatively high growth this year. After the tariff reduction on imported cars, consumers have a general expectation of price cuts, and they are often held in a coin for purchase, and the mid- to high-end used car market will enter a relatively weak state.

According to the statistics from the China Automobile Dealers Association, in 2017, the market share of used vehicles with a price range of less than 50,000 yuan was 55.93%; 50,000-80,000 accounted for 17.33%, 80,000-128,000 accounted for 11.89%, and 12-150000 accounted for 4.47. %, 0.15-30 million accounted for 7.65%, and more than 300,000 only 2.73%.

Luo Lei said that the proportion of used car market in China is mainly concentrated on used cars under 50,000 yuan, accounting for more than half of the entire market. Tariff reduction mainly affects mid- to high-end used car market, but due to the growth of the main varieties of the market, Low-end used cars are the mainstay. Although consumption has been upgraded in recent years and the varieties have moved up, the impact on the entire used car market is not obvious.