What is the impact of the tariff cut on the new energy market?

After 12 years, China's auto imports tariff rates again ushered in the fall. On May 22, 2018, the state council tariff commission issued a statement on reduce import tariffs of vehicle and parts, from July 1, it will reduce the vehicle and parts import tariffs. The vehicle (the tax rate shall be 25% of the 135 tax and the tax rate shall be the number 4 of the income tax rate of 20% to 15%; Auto parts rate is 8%, 10%, 15%, 20% and 25% of the total of 17 tax rate to 6%.It is worth noting that the new energy vehicles will also enjoy the same treatment.

Automobile import tax cut cause foreign investment boom

Said to cut import tariffs, on April 10, Xi Jinping in Boao Asia BBS chairman has been put forward: "this year, we would rather reduce automobile import duties." April 25 day labourer ministry also said it had and the relevant departments to formulate to reduce automobile import tariff adjustment. From put forward to reduce automobile import tariffs to automobile import tariffs on 22 May, more than 40 days alone issued relevant policy, have to say this astonishing efficiency let many people off guard, also caused major foreign car companies of revelry, the tariff cut after many car companies are also beginning to actively corresponding.

As cut tariffs on imports of the biggest beneficiaries, leading high-end luxury brand car companies also issued a statement in the first place. The Audi brand, said the synchronous adjustment related products price, and in Faw-vw Audi's website; BMW's official says it will assess the present system of the suggested retail price, positive response to government measures; Porsche China has also launched a review of product process, will be subject to tariff cuts policy to adjust product retail price, and timely release, moreover luxury brands such as Volvo, maserati car companies have also issued a related statements, respond to lower the car import tariffs. It is not hard to imagine that vehicle (lower import tariffs for quick millions of these giants models will bring more benefit space, to further enhance the competitiveness of the luxury car market in China.

Allow wholly owned factory + import tax rates, "tesla model" or become the norm

In the new energy market, the current mainstream models is still independent brand as the leading factor, the lower import tariffs for foreign brand new energy products into the domestic market has opened a shortcut. When it comes to foreign brand new energy car companies, tesla became have to mention one of the car companies. From cut policy after the tariffs on imported cars, tesla's official said it had the first time according to the tariff to adjust product price, and distributed to all sales outlets, the whole of China from July 1, tesla car companies to sell in China overall prices, different models reduction ranging from 40000-90000.

Combined with the recently tesla company was established in Shanghai and released in the fourth quarter in China builds factory of news, with the popular models Model3 to speculate. The current version with low price of $35000 in the United States, about 223000 yuan, 1% and 25% tariff and freight, total was $281500, plus 17% VAT for 329300, including about 30000 tax, land price is 359300 yuan. When tesla after China builds factory, will no longer afford 1% freight, plus the vehicle import tariffs to 15%, after Model3 plus 15% 17% tariff and value-added tax after the price is 300000, with 30000 yuan price is 330000 yuan, tax be born for this kind of "low price models" has turned to reduce the price of 30000 yuan, compared with the joint venture products price also riches. And high-end ModelS ModelX and ModelS of the price will be greater, fight alone for tesla in the domestic new energy markets led to a more strong market competitiveness.

Combined with the foreign shares of the last year to open policy also officially launched in April 17, the national development and reform commission, said: "this year China will cancel the restriction the foreign shares of the special automobile, new energy vehicles, cancel the foreign shares of the commercial vehicle restrictions in 2020, 2022, cancel the foreign shares of the passenger car restrictions, at the same time cancel joint venture does not exceed the limitation of the two, by 5 years, automobile industry will cancel all limit." The policy effect is canceled the past must be "bound" to the foreign capital enterprise into China sales situation, for many foreign car companies to go it alone opens the door. As a new energy of hindsight Jun to tesla several China "jump ticket" behavior also finally understand, musk had been waiting for is just such a "go it alone". Believe like tesla foreign car companies, not the foreign shares of the new energy vehicles open and lower import tariffs, the circumstances of new energy become the inevitable trend in the future, it is not hard to imagine in the next few years there will be more foreign giants into the new energy, to occupy the high-end car market.

Independent brand new energy affected small, high-end market into a dilemma

According to statistics, in 2017 China imported more than 1.2 million vehicles, including Mercedes-benz, BMW, Audi, Volkswagen, Toyota, Lexus, Porsche and so on, more than $300000 worth of cars accounted for 70% of the market. Lowered tariffs on the imported cars, many people doubt whether will impact on independent brand. For now, more than 65% of the domestic independent brand price is in 150000 yuan of less than, new energy vehicles subsidies generally below 200000 yuan, after the market sales of minivans is within 100000 yuan, and foreign brand competitive relationship does not exist.

But for independent brands to develop high-end market, the automobile import tariff cut is added difficulty, more than 300000 vehicles will be joint brand is not as much as in the past to control, but a ring of joint ventures and foreign products. Independent brands want to be in 300000 yuan or more high-end market situation, face the competition will be a power stronger foreign brand, and facing the import tariff declines, probably joint brand prices down further.

On the car import tariff cut, on the one hand, shows the level of automobile industry in our country at present the leading position, conforms to our country current automobile market situation; On the other hand also hit a boost for the domestic automobile market, the price of imports down resulting in a decline in domestic automobile market conductibility and let more consumers have the ability to buy cars, so as to further promote the development of automobile industry in our country.

The page contains the contents of the machine translation.