The boots for automobile tariff cuts finally landed. The State Council Customs Tariff Commission issued an announcement on the 22nd, starting July 1, 2018, reducing the import tariffs on autos and auto parts. The tax rate will be 135 for 25% of the vehicle's complete vehicle tax rate. Tax rates for 4 tax codes with a tax rate of 20% have fallen to 15%, and tax rates for auto parts and components have been reduced to 8%, 10%, 15%, 20%, and 25% for a total of 79 tariff lines. .
The reduction of auto import tariffs is precisely the implementation of the government's work report in the Boao Forum that China announced earlier this year will reduce automobile import tariffs considerably. This industry has generally agreed that the tax cut is not too small. According to the Customs Tariff Commission of the State Council, a total of 178 tax codes for China's automobile fleet, the most-favored-nation country's arithmetic average tax rate fell from 21.5% to 13.8%, of which, the tax rate for 135 tax codes with a tax rate of 25% was reduced by 40%. The 97 most-favored-nation arithmetical average tax rate for auto parts of 97 tariff lines was reduced from 10.2% to MFN rates for all parts and components was 6%. After the tax reduction, China's auto import tariff rates ranged from 3% to 15%, The average level of developing countries is low.
The price of a car is determined by many factors. Import tariff is only one of the factors.
As regards whether consumers’ lower tariffs, the most concerned by consumers, can bring about a drop in the prices of imported cars, the above-mentioned person in charge pointed out that the price of automobiles is determined by various factors. Import duties are only one of the factors. From the perspective of the selling price of automobiles, the manufacturer determines The market guidance price largely determines the final selling price of the car. There is a certain link between the tariff and the manufacturer's market guide price. Lowering the tariff is a factor of price reduction. However, whether the car is reduced in price and how much the decline is market behavior.
The industry pointed out that the taxes on imported cars are mainly composed of tariffs, consumption tax and value-added tax. The consumption tax is based on the volume of imported cars. The higher the exhaust volume, the higher the automobile consumption tax. It is relatively high compared to the original. Prices, lower tariffs can effectively reduce the price of imported cars.
Jia Xinguang, a senior expert in the automotive industry and an executive member of the China Automobile Dealers Association, said that this time the tariff cuts were relatively large, which is quite large. It can be said that it is a big step in auto tariffs. For high-end imported cars The market impact will be more obvious, and this effect has already appeared before. Now many high-end import markets have dropped 10,000 to 20,000 yuan.
On the other hand, currently there are more than 1 million imported vehicles each year, which is relatively small compared to the total domestic auto sales market of 30 million vehicles per year, and will not have a major impact on the current overall automobile market. Moreover, Imported cars and domestic models are complementary, and most multinational companies will not be able to import cars as long as they are produced in China. Imported cars will not be produced in China and will not directly impact domestic car prices.
Su Hui, executive vice president of the branch of the China Automobile Dealers Association’s tangible market branch, stated that the most significant impact of this tariff reduction is on the luxury car market because luxury cars themselves are of high value. If they fall by 10%, the impact on price will be Very large. The impact on mid-range cars and economy cars is relatively small. At the same time, one of the focal points of this policy adjustment is actually the reduction in the tax rate of parts and components. Because the reduction in the rate of parts and components is classified, this pair of imported cars is zero. The impact of component prices is relatively large. Because the maintenance costs of imported high-end models, such as zero-to-zero ratio, have remained high, this tax rate reduction will bring relatively large impact and changes to the maintenance service prices of high-end imported vehicles.
Industry experts said that the reduction in automobile tariffs will help increase market competition and help auto consumption upgrade. The reduction in automobile tariffs will increase the number of customers entering the stores and promote sales. The reduction in automobile tariffs will be the strongest luxury car market this year. Strong support. At the same time, some experts also stated that the reduction in automobile tariffs only brings room for auto companies to reduce costs, and ultimately whether they will result in a decline in sales terminal prices. It also depends on the response of auto companies to this policy.
However, judging from the current reaction of auto companies, the results are still very optimistic. After the release of the policy, imported luxury brands such as Volvo, Porsche, BMW, and Audi all stated that this policy will benefit consumers and help To further enhance market vitality, we will evaluate and adjust the current price system, adjust retail prices, and serve consumers at more optimal prices.
Experts indicated that the opening degree of China’s auto market has been continuously deepened recently, including the reduction of VAT in the manufacturing industry, the liberalization of joint-venture auto company-to-equity ratios, and the substantial reduction in tariffs, all of which are continuing to benefit consumers. The policy superposition effect is also expanding. With the reduction of tariffs on imported cars, the price of luxury brand models will further decrease, which will also make the market competition more intense. With the reduction of import tariffs, part of foreign luxury car companies The process of localization of models may be delayed. China's auto production and consumer markets will start a new era of competition.
Jiang Xinghuai, general manager of Jianghuai Automobile, told the reporter of the Economic Information Daily that the auto tariff will be drastically reduced and multinational corporations will measure the cost performance. It is more cost-effective for a certain model to choose whether to manufacture in China or import vehicles from other countries. These companies must It will seek lower costs and higher returns to increase brand influence. With changes in import tariffs and future policy restrictions such as loosening of share-to-limit ratios, it is expected that the elimination of the automobile industry will intensify, and mergers and reorganizations will become increasingly fierce. It is the pain that will appear in a short period of time. 'The reform and opening up of the automobile industry is the trend of the times. In the auto industry's domestic and foreign competition has stepped into the background of the white-hot stage, we must strengthen the complementarity, integration and utilization of value chain resources. Internally or externally, we must seek a win-win way in innovation and open cooperation.
Tu Xinquan, dean of the WTO Research Institute of the University of International Business and Economics, pointed out to the reporter of the “Economic Information Daily” that we hope to drive the development of the Chinese auto industry and local companies through foreign investment. From the current perspective, we have achieved very good results. The maturity of the market and the competitiveness of domestic companies have all greatly improved. China's traditional automotive industry is already very mature, and new energy vehicles are also quite competitive. Chinese companies should have the confidence and ability to develop a fair relationship with foreign companies. competition.