Will the price of joint venture cars be lowered by the reduction of automobile tariffs?

The impact analysis is as follows:

The adjustment of imported cars is likely to cause a new round of war in China's auto market, and even has a certain negative impact on the domestic auto market.

First, the short-term impact: here is more for the joint venture, taking into account the adjustment of imported cars, as well as the problem of product positioning, in the initial stage, the impact on domestic brands is not great, but for each joint venture, affected by the localization of some models, the price advantage will be further reduced, and there will be overlap between various car companies for competing models, such as the original ** not high imported models such as Subaru, Infiniti, etc., after the tariff is lowered, ** is lower. They will become strong competitors in the joint venture model market, and it is not ruled out that the joint venture model will be further reduced**.

The second is the long-term impact. Since domestic auto brands are more concentrated in the low-end market, they will have an impact on joint ventures in the initial stage, but with the increase of time, domestic brands will also be impacted, because in addition to the reduction of tariffs on vehicles, the tariffs on imported auto parts have also been reduced, so the use of domestic parts manufacturers will gradually begin to reduce prices, so the cost will also decrease. The most important thing is that after the tariff reduction, the barriers to protect domestic brands have disappeared, and the intensification of competition in the automobile market is an inevitable trend.

**[Seven points to say], some of the analysis is still good, involving many aspects, and you can learn a lot of new things

With the approval of ***, since July 1, 2018, the tax rate of 135 tax codes of 25 and the tax rate of 4 tax codes of 20 for automobiles will be reduced to 15, and the tax reduction ranges are respectively; The tax rate of a total of 79 tax lines for auto parts was reduced to 6, with an average reduction of 46.

Reducing tariffs is not only a way for the country to promote the international amount, but also an important way to reduce the tax burden of taxpayers. When domestic automakers reduce import tariffs, there will be price reductions in the use of imported parts, but most auto parts tariffs have only been reduced by 2%, which is not too big for products. There is a little room for price reduction, compared with imported cars have about 10% room for price reduction, and the price reduction of domestic joint venture cars will be very small.

The reduction of automobile tariffs will not necessarily reduce the price of joint venture cars, and the price reduction will still be affected by the market. It stands to reason that the value-added tax has been reduced by one point, so it should also be reduced.

The State Customs Tariff Commission issued an announcement that from July 1, 2018, China will reduce the import tariffs on complete vehicles and parts: the tariffs on complete vehicles with a tax rate of % will be reduced to 15%; Reduced tariffs on auto parts, which are taxed at % to 6%. The reduction in tariffs this time is not small, and many people have begun to calculate how much cheaper it is to buy imported cars.

In fact, whether and how much the price of imported cars can be reduced, things are really not that simple.