· Parallel import cars still need to cross multiple thresholds

The parallel imported car business of the Shanghai Free Trade Zone was officially launched recently, which indicates that the parallel imported cars that have been in the gray area have finally had legal status. However, the Beijing Business Daily reporter found that although the parallel imported cars in the Free Trade Zone are more in line with relevant national regulations, this has led to an increase in the cost of vehicles and a narrowing of the price advantage. In addition, multinational companies will also control the number of related models by adjusting. It is widely believed in the industry that it will take time for the parallel imported car market to break out.
On February 15th, the parallel import car business of Shanghai Free Trade Zone was officially launched. Although the trading center only showed no sales during the Spring Festival, many consumers still went to consult. It can be said that the Shanghai Free Trade Zone has legally recognized the parallel imported car business that has been controversial.
According to previous estimates, the price of parallel imported models will be about 20% lower than that of imported cars. The speculation has been tested after the parallel import of the Shanghai Free Trade Zone. According to reports, the difference between the price of parallel imported cars and 4S stores in the Free Trade Zone depends on the model. Generally, the higher the price, the greater the difference. For example, the BMW X5 xDrive35i (Middle East Edition), BMW X6 and Porsche Cayenne 3.6L are imported at a price of 760,000 yuan, 760,000 yuan and 960,000 yuan respectively, which are the same or similar to domestic 4S stores. The model is about 20% cheaper. However, some imported cars with lower price points may have a price difference of only 10% or even less than 10%.
Although the price advantage of parallel imported cars in the free trade zone is not small from the surface, Wang Cun, senior manager of the marketing department of SINOMACH Co., Ltd. believes that the parallel imported cars in the free trade zone need to comply with national regulations in terms of various rules and regulations. This will inevitably lead to an increase in the cost of vehicles. In addition, the current preferential tariffs for imported cars in the formal channels are also very large. In general, the price advantage of parallel imported cars in the free trade zone is not as large as expected.
A distributor group manager revealed that because the Shanghai Business Council set too high a threshold for companies entering the Shanghai Free Trade Zone for parallel imported car business, many small and medium-sized dealers who have been engaged in parallel imported car business are not qualified to Shanghai at all. The free trade zone is doing parallel import truck business. The dealer group that had previously held a wait-and-see attitude was “pushed” by the Shanghai Free Trade Zone to do parallel imported car business.
It is reported that parallel imported cars refer to cars that have been purchased from overseas markets without the authorization of brand manufacturers and introduced into the Chinese market for sale. How this kind of "water truck" ensures safety is the first question that car buyers need to consider. In order to allow more powerful enterprises to come from the trade zone to carry out sales services for parallel imported cars, the rights and interests of consumers are guaranteed. The Shanghai Municipal Commission of Commerce has placed high demands on the pilot dealer group. According to the “Notice on the Pilot Project of Parallel Imported Cars in the China (Shanghai) Pilot Free Trade Zone” issued by its official website, the parallel import vehicle distribution in the free trade zone. There are three hard conditions for business: auto sales for more than five years, continuous profit for the last three years, and sales of more than 400 million yuan in the previous year.
“There will be problems in doing so. Many dealer groups have not had parallel imported car business before, so they are not familiar with the process of the business and need to slowly explore; on the other hand, the parallel import car dealers in the free trade zone provide for consumption. Most of the after-sales service is realized through insurance. These expenses will eventually enter the cost of purchasing the car, which inevitably increases the price of the car purchased by the consumer." The above-mentioned boss said.
In addition, multinational companies have been paying attention to changes in the parallel import vehicle policy in the Chinese market. According to an imported car dealer, a German luxury brand is about to change its displacement on its 3.0T model. The actual displacement of the 3.0T model was 2.979L. After adjustment, the displacement of the model will be It is 3.004L. "After the displacement adjustment, the tax on the entry of this car into the Chinese market will rise, which will narrow the price gap between the car and the imported car of the normal channel."
The data shows that in 2013, the number of parallel imported cars entering China was about 100,000, accounting for 8% of the total domestic imported cars. Wang Cun believes that in the long run, the introduction of parallel imported cars has broken the system of dealers' authorized filing, opening up new channels for imported car sales, making market competition more open and car prices more reasonable. "But in the short term, there are still many thresholds for the parallel import truck business in the Free Trade Zone, and the market will not change much."

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