Shocking! The import car tariffs took a nosedive in 2018. What's the profound meaning behind it?

In 2018, for the automotive industry, the adjustment of import car tariffs was undoubtedly a blockbuster, causing ripples in the automotive market. This policy change has had a profound impact on both automotive consumers and relevant practitioners in the automotive industry.

On May 22, 2018, the Tariff Commission of the State Council issued an announcement. Starting from July 1, 2018, the import tariffs on complete vehicles and auto parts would be reduced. The tax rates of 135 tariff items with a vehicle tax rate of 25% and 4 tariff items with a tax rate of 20% would be lowered to 15%. The tax rates of a total of 79 tariff items with auto part tax rates of 8%, 10%, 15%, 20%, and 25% would be reduced to 6%. This adjustment aims to further expand reform and opening up, promote supply-side structural reform, facilitate the transformation and upgrading of the automotive industry, and meet the consumption upgrading needs of the people.

For the vast number of automotive consumers, the most feeling of the reduction of import car tariffs is that the price may drop. Take Mr. Zhang as an example. He had been keeping an eye on a certain imported luxury brand car. Before the tariff reduction, the on-the-road price of this car was as high as 1.5 million yuan. After the tariff reduction, the dealer quickly adjusted the price, and Mr. Zhang drove his beloved car home at a price of less than 1.4 million yuan, saving a considerable amount of money. Due to the reduction of tariffs, the cost of imported cars has decreased, market competition has intensified, and the prices of some models have dropped to varying degrees. Consumers have more choices and bargaining space when buying cars, and they can enjoy the quality and performance of imported cars at a relatively lower price.

From the perspective of the automotive industry, the reduction of tariffs has brought new challenges and opportunities to both import car dealers and domestic car manufacturers. For import car dealers, while the cost is reduced, the market competition is becoming more and more fierce. In order to compete for market share, they need to continuously optimize their services and enhance their brand competitiveness. Some mid- to low-end imported car brands may face greater pressure because their price advantages are no longer obvious, and they need to work hard on product features and service quality. For domestic car manufacturers, on the one hand, the price drop of imported cars may seize some market share; on the other hand, it also prompts domestic automobile enterprises to accelerate technological innovation and industrial upgrading, improve their product quality and competitiveness, and develop towards the high-end. For example, some domestic independent brand automobile enterprises have increased their R & D investment and launched models with more technological content and quality to cope with the competition from imported cars.

The adjustment of import car tariffs in 2018 is an important milestone in the development path of China's automotive industry. With the continuous optimization of tariff policies, China's automotive market will be more open and diversified. Consumers are expected to continue to benefit from a richer selection of products and more reasonable prices. Automobile enterprises need to continuously adapt to market changes, drive through innovation, and enhance their own strength to stand out in the wave of globalization competition. It is hoped that readers can actively share their views on the adjustment of import car tariffs and jointly discuss the future development trend of the automotive market.