Imported cars are really cheaper: a 700,000 yuan luxury car is now priced like this! Will domestic cars be affected?

Not long ago, the State Council Tariff Commission issued an announcement that starting from July 1, 2018, the tariff rate for imported complete vehicles will be reduced from 25% to 15%, and the tariff rate for imported auto parts will be reduced to 6%. What is the impact of this on consumers and dealers?

Import car tariff reduction: dealers cut prices in advance, consumers react differently

After the announcement of the reduction in automobile tariffs, CCTV financial reporters visited a number of imported car 4S stores in Shenzhen. Dealers told reporters that although there is still some time before July 1, they have already reduced prices in advance. For example, a car in a certain 4S store was originally priced at 724,800 yuan, but after the price reduction, it was 677,800 yuan, a price reduction of about 6.5%.

Xing Wen, store manager of Shenzhen Huaxi Automobile Sales and Service Co., Ltd.: There is an overall tax rate calculation method. For us, the price of a car can be reduced by at least 5 to 10 percentage points.

Xing Wen told reporters that the reduction in import car tariffs will help increase the store's profits. In the future, when the sales price of imported cars drops, it is estimated that sales will increase compared to the past. Therefore, correspondingly, the increase in sales will bring about an increase in profits from after-sales services and car beauty.

Xing Wen, store manager of Shenzhen Huaxi Automobile Sales and Service Co., Ltd.: As we all know, now whether it is a joint venture car or a domestic car, in fact, its manufacturing technology and so on are very close to those of imported cars. The prices of imported cars have always been higher than those of joint venture cars and domestic cars. Therefore, this will bring the price curves of several workshops closer together, allowing more customers to choose imported cars. After all, the manufacturing technology of imported cars is still more prominent here.

The manager of a car dealership who was attending an exhibition at the Shenzhen Convention and Exhibition Center told reporters that after the tax reduction policy was introduced, many more customers came to the showroom to look at imported cars, and consumers paid more attention to imported cars.

The reduction of tariffs is a great news for car consumers. No matter how much the tariff is reduced, users will get lower terminal prices for imported cars than before. So how will consumers react? Will the reduction in sales prices prompt consumers to buy more imported cars?

After interviewing many consumers at the auto show, CCTV financial reporters found that consumers' purchasing attitudes towards imported cars are diverse, because in addition to the price of imported cars, brand effect and after-sales service are also two major aspects that consumers care about.

Import tariffs cut to improve competitiveness of domestic car companies

In the first quarter of 2018, the main business income of the automobile industry increased by 7.9% year-on-year, and the total profit decreased by 4.7% year-on-year. Analysts believe that due to the slowdown in the growth of overall automobile sales and the further intensification of industry competition, the profitability of automobile companies will also be affected. Once the United States raises automobile tariffs, it will also affect the internationalization and export of Chinese automobile companies.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.