Since July, tariffs on imported cars have dropped.Bittersweet news for some import car dealers

2018-07-05 13:53

Since July 1, China has reduced the import tariff rate of complete vehicles and parts to 15%; on the other hand, since July 6, China’s tariff on American-made cars has risen from 15% to 40% (non-American produced cars still carry the above-mentioned 15% import vehicle tariff rate). The reporter recently visited and saw that due to the superposition of the new policy, this year's imported car market is particularly subtle. After the consumers-wait-and-see stage in June, the market has obviously warmed up and the volume has increased.

Prices are cut and sales have increased by 20%: Non-American-made imported car dealers laughed.

In the Audi 4S store of the Airport Auto Park, many consumers are consulting the price reduction of imported cars. "My Wechat Moment is all about the news that imported cars have to cut prices. Come and see. I have been waiting to see the impact before, and now there is a suitable shot." Mr. Wu, who is watching the car, said that he has seen several imported cars before. There are different price cuts, and the choice of car purchase becomes larger.

The sales staff of the Audi 4S store in the Airport Auto Park told the reporter that after the news of the tax reduction in May, many consumers were in a wait-and-see state, and the sales volume in June was declining. Starting from July 1, the number of customers who came to the store to consult and purchase cars increased by 40% to 50%, and the consumption fever increased significantly so the sales volume increased by about 20%.

How much benefit can consumers get from the tax reduction of imported cars? The reporter noticed that compared with the previous sales price, most imported cars have different price reductions. For example, the Audi Q7 price reduction is about 50,000 yuan, and after the BMW X5 price adjustment, there is about 40,000 yuan fluctuation. "Now it is the off-season of car consumption, and the store will have a certain discount so the price is also lower. In addition, the dividend brought by the tax reduction can really enable consumers to enjoy certain benefit," said a related person in charge of a car 4S shop in theAirport Auto Park.

However, the above-mentioned person in charge also said that the actual preferential promotion enjoyed by consumers and the adjustment of tax reduction are not exactly the same. The terminal price of reaching consumers is affected by many factors. Tariffs are only one of the factors affecting the price of imported cars. There are many steps in importing goods from import tariffs, import consumption tax, import value-added tax, land price to terminal priceand other procedures. The tax reduction is only for import tariffs, and the import consumption tax and import value-added tax have not changed.

Before the tariff is raised, go quickly to declare: American-made imported car dealers are anxious.

Starting from July 6, China’s tariff on imported cars from the United States will rise from 15% to 40%. It should be noted that this refers to cars produced in the United States, not American car brands. This means that tariffswill rise for not only imported cars such as Tesla, Jeep, Lincoln, Cadillac, but also BMW, Mercedes-Benz, Infiniti but also other vehicles built in the United States and exported to China.

The reporter learned from some parallel import car dealers in the Free Trade Zone that after the tariffs on imported cars from the United States increase, automakers will definitely increase the price of car guidance. Among them, Lincoln and Tesla all face rising prices. Take a model with a displacement of 3.0L and a duty-paid price of 400,000 yuan. When the previous tariff rate is 15%, the tariff is 100,000 yuan, the consumption tax 68,000 yuan, and the value-added tax 96,500 yuan so the total cost is 664,500 yuan; after the tariff is increased by 25%, the tariff is 200,000 yuan, the consumption tax 82,000 yuan, the value-added tax 116,000 yuan so the total cost is increased by 133,500 yuan.

The reporter noted that many car dealers are currently actively pursuing customs declarations during the window period from July 1 to 5. "If you can't catch up, you will be charged a high 40% tax, or return directly." A parallel import car dealers estimate that after the tariffs of BMW X5, Mercedes-Benz GLE, Jeep Wrangler, Jeep Grand Cherokee, Infiniti QX60 and other hot car modelsincrease, the estimated price increase will be 10%-15%.

Mr. Sun, who works in the Binhai High-tech Industrial Zone, was optimistic about the Tesla Model X. However, due to the increase in tariffs, he has not been able to buy a Tesla immediately, so he turned to buy a Japanese-made Toyota SUV. It is claimed that due to the impact of rising import tariffs on imported cars, there are also a small number of consumers who have switched from buying American-made cars to buying non-American-made imported cars.

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