Imported car price cuts have corporate sporadic one-gun tariffs fell into their own pockets

The news of import tariff reductions has been reported for more than ten days, and the market has begun to exhibit a domino-style chain reaction. Delay in the declaration of new cars leads to the entry of imported cars into the market; the downward adjustment of the guide price of the host manufacturers does not completely trigger the simultaneous reduction of the transaction prices in the terminal market; As some OEMs have reduced their rebates to dealers, the market predicts that dealers' incentives for the final price of imported vehicles will be more tightened.

On May 22, the State Ministry of Finance issued an announcement that, starting on July 1, 2018, the import tariffs on vehicles and parts will be reduced. Tax rates for 135 tax numbers with a full vehicle tax rate of 25% and 4 tax numbers with a tax rate of 20% will be reduced to 15%, and tax rates for auto parts will be 8%, 10%, 15%, 20%, and 25 respectively. The tax rate for a total of 79 tax numbers dropped to 6%.

As soon as the news came out, major car companies liked the new deal and praised the manufacturer's proposed retail price cuts. The drop ranged from a few thousand dollars to several hundred thousand dollars, with a margin of about 8%. A series of market changes began quietly.

"Because the New Tariffs will be implemented on July 1, in order to make declarations at the preferential rate of the New Deal, we now choose to delay customs declarations for imported cars that have already landed, unless the time limit is not reported, we will declare." Importers in the field of imported cars told the Economic Observer Online. "Some of the vehicles on the road will be notified to transfer to Hong Kong; if they are still not shipped, they will be stopped."

“There will be very little customs clearance in May and the customs clearance in June. Therefore, the customs import statistics before July 1st should not look good.” Wang Cun, deputy director of the Board of Directors Office of State Machine Corporation, confirmed This statement.

This directly led to some imported models in the market can be surprising goods can live. "The supply of Audi Q7 has been very tight, and the one with the highest number of Q7s arriving at the port is one." An Audi dealer told the Economic Observer Online reporter that Audi's imported cars of other configurations are also very small. Each store also has one or two cars.

It seems to the industry that the imported cars that have already arrived in Hong Kong at the moment will become the most valuable ones after entering the customs on July 1. Since the market has passed through a period of blank window, these vehicles entering the market at the first time will instead As a result, the price is doubled.

Afterwards, the suggested price for guidance has been lowered, and it is being interpreted as the largest group official in China's auto industry in ten years. However, at the end market level, before the tariff adjustment, is the dealer's quotation lowered and how much? debate.

"Before, the imported car market generally had 5%-15% profit sharing promotions." An imported car dealer told reporters that after the manufacturer's guidance price adjustment, whether the transaction price of the terminal will be reduced again on the basis of the original promotional profit. In fact, it is even more difficult. First of all, the terminal price of the dealer needs a very complicated calculation system to calculate, including the supply and demand relationship, competition situation, rebate expectations, etc. All these need to be considered, and it is not a direct reduction. Therefore, many dealers are still waiting to see.

In addition, business is profitable. "Some dealers have their own calculations. Although manufacturers are giving up profits, but can make more money is a point, why go with it?" An unnamed dealer said, "The current dealers' so-called price cuts are mostly The gimmick made through the reduction of tariffs is essentially nothing more than a continuation of promotional offers before the downward adjustment."

More importantly, some brands began to use the tariff adjustment on imported cars on May 23 as a watershed to adjust the rebate policy for distributors. In other words, before May 23, all rebate policies of the manufacturers were unconditionally all in place. After the 23rd, some manufacturers adjusted the rebate policy while lowering MSRP (manufacturer's suggested retail price), and the rebate rate was not as good as before.

"Usually, achieving a certain performance to obtain rebates from OEMs is the key to dealers' profits. Many dealers will lower their selling prices in order to make money, so they can receive rebates or return rebates to consumers in a preferential manner." If the OEM reduces the rebates, the distributors will certainly not be able to give a discount on the transaction price of the terminal. The decline in the transaction price of the terminal market will be more conservative.