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The reduction in tariffs from July 1st provided room and justification for the price cuts of imported vehicles. In the half a month before the implementation of the New Deal on July 1, the prices of imported vehicles in the Beijing auto market have been falling, such as BMW. The price of the X5 in the Asian Games Village market has fallen by 140,000 yuan. The downward adjustment of this tariff has also led to the justification for the sluggish import car. Before that, due to the state promulgated and implemented a new policy of levying consumption tax on large-displacement cars, some Imported vehicles took the opportunity to increase the price by tens of thousands of yuan, but the effect of price increase was not obvious, and even quite passive. They found that the sales volume of the car after the price increase was very general, and the situation that ordinary people did not buy up or did not appear, it is precisely this Sub-tariffs have been lowered for the downward adjustment of imported car prices; and in the space of price cuts, it can be understood that the impact of tariff cuts on consumers far exceeds the policy itself. This time, the 3% reduction in imported car tax rates is related to the price of cars. The downward adjustment effect will not be particularly obvious, but the intuition of this policy to consumers is that the vehicle price should be reduced. How to reduce or reduce the number of people's minds is unaware of the situation. The psychological impact of the tax rate's downward adjustment on consumers is enormous. Even those who do not buy imported cars are expecting that the price cuts for imported cars will reduce the price of domestic models.
The country is the country with the most automobile taxes and fees in the world, which is also the reason that restricts the import of imported cars into the Chinese market. Because our consumption environment is not good, there are more than 130 kinds of harsh taxes and taxes, and the price of an imported car is not only for bare cars. In addition to the price, it will also be affected by various factors such as freight rates, tariff rates themselves and exchange rates. An important factor contributing to the high price of imported vehicles is the tax rate, but we can see that the tariff rate of imported vehicles has dropped from the previous 200% to 25%. The process itself is also a process of gradual decline in vehicle prices. To reduce the price of imported cars once again, it is necessary to cancel or reduce various taxes and fees, including landing taxes.
Policy exploration
From July 1, the tariff rate of imported vehicles will drop to 25%, which can be regarded as the end and end of the traditional protection of local automobile companies by Chinese authorities. The tariff rate of imported cars on June 31 this year was reduced to 25%, which was the result of negotiations in China's accession to the WTO. After China's accession to the WTO, the tariffs on imported automobiles have been reduced by 7 times in total, of which only two have been adjusted this year. This kind of frequent adjustments and the mode of small adjustments each time is to achieve the protection of local automobile companies. . The continuation of the policies concerning the management of characteristic components and parts of completed vehicles and the new consumption tax can be regarded as a continuation of a new type of protection and traditional protection for local auto companies by the relevant departments, avoiding the reduction or elimination of tax rates for the Chinese auto industry. The impact was too great. The introduction of new policies and regulations can be understood as a new protection of the country’s domestic industries. After all, in the face of the fact that China is already the second largest automobile market in the world, the Chinese auto industry is still fragile, and many imported or joint ventures are China is treated as a processing base rather than a technology-changing market. Whether Chinese domestic companies can become bigger and stronger within an effective period of protection depends on the company's own good fortune.
Influence on domestic auto market
The impact on domestic cars is certainly there, but the impact is not great. And its psychological impact on consumers is still huge. When the policy comes, there is no end to the consumer's mind. How much can it be reduced? I believe that the price of domestic cars will also be slightly reduced, but it will not have much practical effect, because when we find that imported cars have an advantage in the price, the new problem is that the after-sales service of imported cars is not sound. At the same price, the majority of consumers are still willing to spend on car repairs and maintenance of relatively convenient joint venture models.
Impact on the local parts industry
Relative to imported vehicles, the reduction in the tax rate of parts and components may have a greater impact on local peers. In the past, the greatest advantage of domestic Auto Parts manufacturers was localized production and price advantages. Along with the reduction of the tariff rates on imported auto parts, domestic counterparts are now at the same time as prices are equal to foreign companies. How to improve quality will become a matter of urgency and a new test. Apart from Shanghai, the localization of parts and components of auto companies throughout China is not satisfactory. On the one hand, many people are not aware of the hugeness of this industry. Another factor is that many auto parts manufacturers in China are behind the scenes. It is believed that after the tariff rates on auto parts are lowered, foreign companies will enter the Chinese market to invest and build factories. They will launch new fights with Chinese domestic parts and components manufacturers.
Judging from the deadlines of these years, the effect of protection is not very positive. Externally, within a few years after South Korea’s accession to the WTO, the automotive industry represented by Korea’s Hyundai has achieved unprecedented development. Hyundai has also grown into an international automobile giant with international influence, while China has only achieved the role of protecting the market as a whole. However, it has not formed a car company with international influence. From the perspective of internality, although the domestic local enterprises represented by Geely and Chery have grown rapidly, there is still a gap with people's expectations. It is undeniable that the repeated reduction of import vehicle tariffs has a positive impact on China's auto industry, but another important factor that cannot be ignored is that it is not obvious. The end of the reduction of import vehicle tariff rates will further increase the risk of local companies. Apart from the lack of foreign investment experience and technology, we lack the spirit and attitude of dedicated work.