China: cutting prices for cost of cars

28/05/2018

 

Rebates on the models of large car companies investing in China, thanks to cuts in vehicle import tariffs

 

News for Chinese car market. Last week, the Ministry of Finance announced strong cuts in import tariffs on vehicles and car parts, starting July 1, 2018. At least 22 car companies announced China’s price reduction plans.

Auto companies, including Volvo, Audi, Lexus and Mitsubishi, have announced plans to reduce vehicle prices ranging from 7,200 yuan (1,127 U.S. dollars) to 392,800 yuan depending on different brands and models.

 

According to economic sources, is the largest price cut in the Chinese automobile industry in 10 years

 

A scenario to which Italian automotive brands, in particular, Alfa Romeo and FIAT  (both of the FCA group), also look with interest. In fact, the brand led by CEO Sergio Marchionne has long been expanding sales in the Chinese market.

 

The scenario could push Chinese car brands to adjust prices to remain competitive

 

Analysts have analysed the market scenario, stating that the adjustment of the prices of imported vehicles will be a challenge for Chinese car brands. In fact, these could lower prices further to cope with foreign competition.

Moreover, China has remained the largest automotive market in the world in terms of production and sales for nine years. In 2017, China produced over 29 million vehicles, importing over 1.2 million at the same time.

 

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