“An early response, in one step. The entire department has already adjusted the price of imported cars.†On the afternoon of May 28th, in a Mercedes-Benz 4S store in Beijing, there were not many consumers. In the quotation card of the relevant imported car, the slogan on tariff reduction was striking.
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%.
Since then, major car companies have made corresponding price adjustments for pricing. The drop ranged from a few thousand dollars to several hundred thousand dollars, with a margin of about 8%. "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." A practitioner in the import car field told the Economic Observer reporter. "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."
"The next time in May and the customs clearance in June will certainly be very small. 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 highest Q7 arrives at the port," said one Audi dealer.
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 collective officer in the Chinese automobile industry in ten years. However, at the end market level, does the dealer’s offer actually drop and how much? Virtual reality is difficult to argue. "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 dealer's terminal price needs a very complicated computing system to calculate, including the supply and demand relationship, competition situation, rebate expectations, etc. These all need to be considered, and it is not a matter of direct reduction. Therefore, many dealers are still waiting to see.
"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 23rd, all rebate policies of the manufacturers were unconditionally all in place. And after the 23rd, some manufacturers adjusted the rebate policy while lowering the 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 terminal transaction prices will be more conservative.
Discount 20% shrinks to 10%?
"The tariffs have dropped and the guide price has dropped. Is it because the preferential price (the market terminal price) has to be lowered? The guide price has dropped by tens of thousands, and then there are tens of thousands of discounts? You want more, friends." This is Beijing. A 4S shop in a brand, a circle of friends issued by a sales consultant. “In terms of dealer profits, do you think it is possible? It was nothing more than the original 20% discount. Now it becomes a 10% discount.†The core expression of this sales consultant is: Do not wait, the terminal discount has been in the end . "Some of the consumers are actually holding their money for purchase," said Li Yanwei, an analyst in the automotive circulation industry. In fact, it did not wait until July 1 that most of the mainframe vendors had adjusted their factory guide prices. "Automobile tariff adjustments to 15% will have only a 6% impact on the guided price of imported cars. The original discounts on many imported cars have already exceeded 6%, so the impact on the prices of imported car retail markets will not be significant for the time being." It is not possible to look at the price list every day, so it is difficult to understand the promotion price of tariff adjustment and the comparison after adjustment.So, whether it is a true drop or a false fall, there is a huge elastic space in the meantime, which is controlled by the dealer. "One imported car dealer said so. Prior to the reduction of tariffs, imported car sales at the market level already existed. The price cuts of the new generation of models have been relatively large, and some have reached a 15% decline. Volvo, Audi, Cadillac, etc. are all brands that promote sales.
In Beijing, a Toyota 4S store, imported Senna will have a discount of 1-2 million yuan on the basis of the proposed retail price of 676,000 yuan. The drop of Land Cruiser is also less than 20,000 yuan. In response, the sales consultant said, "This is a proactive promotion in the store, and it has nothing to do with tariff cuts. Because it is a vehicle that is proposed before the tariff reduction, in order to avoid the loss caused by the subsequent substantial price cuts, it is necessary to clear inventory as soon as possible."
As a brand with more discounts previously, the discounts for Volvo dealers are not the same. For XC90, after this, the suggested retail price was 6.88 million yuan. After the tariff adjustment, the official price cut was 638,800 yuan. In fact, as early as two months ago, the dealer's promotional price has been as low as 620,000 yuan. However, the reporter called the Volvo 4S store as a consumer. Some stores did say, “Regardless of the quotations we gave you before, we will give a real price cut based on the price after this tariff reduction.â€
Such as the minimum allocation of XC90, on the basis of the previous discount, price reduction of 56,000 yuan. The final purchase tax, service fees and other expenses add up to a total price of 582,000 yuan. For the time when it is possible to mention a car, a sales manager at a Volkswagen 4S store in Beijing said, “You can deliver the car within two weeks. Although the car is declared before the tariff is reduced, the manufacturer will give the dealer a subsidy. The manufacturer told us that you You can sell (car)."
However, soon, dealers will adjust rebates for manufacturers, and the discount on terminal prices will be tightened again. Some dealers told the Economic Observer News reporter, “The OEM’s business rebates to distributors may have been 15% to 20% before, after the introduction of the New Deal. In fact, some OEMs will convert rebates into 10%, and they will make profits accordingly. Regulation.†The dealer said that he had to put his interest rate on the terminal price now to ensure his own revenue.
"Before the market, there was no concession and the car was always sold at the manufacturer's guideline price. On the contrary, after the tariff adjustment, the price of the terminal market was actually reduced." A dealer told reporters. For example, if the manufacturers suggested that the retail price of the terminal be adjusted by 6 points, and before that time, there is basically no concession, or only 1 point of discount, but less than 6 points are now decentralized to 6 points. . Take a Mercedes-Benz 4S store in Beijing as an example. In an interview with the reporter, the salesman stated that after the tariff adjustment, the manufacturer’s suggested retail price was implemented.
The price system is fully adjusted
In 2017, the cumulative import volume of imported cars in China was 1.216 million, which accounted for 4.2% of the total sales for the whole year. The body size was not as large as possible. However, the further reduction of import tariffs will still infuse the entire imported car market with vitality.
First of all, new energy imported cars will be hotter. If Tesla, the first to announce price adjustment, adopts a direct operating model, has no distributors, and is not subject to emission limits, it will be highly sought after by the market for price reductions. Second, compact imported vehicles will create competitive pressure on joint venture brands. Wang Cun predicts that the low-grade models in the compact midsize cars will have the potential to compete against the high-level vehicles of the joint venture brands and even grab share.
Take Subaru and Lexus as an example. After the price adjustment, prices continue to drop. "Some brands that have not yet been made in China will use this opportunity to seize the market," said Wang Cun. It can be understood that the brands that have already achieved domestic production in China will certainly evaluate the guide prices of imported vehicles and the pricing of joint venture brand models. For example, Toyota will certainly consider the guide prices of Lexus imported cars and Toyota imported cars, and will not impact the domestic car price system due to drastic adjustments.
More importantly, parallel import cars will be expected to further expand market share. “In the past two years, a series of policies have been issued, which are favorable to parallel imported vehicles, which has led to a higher sales volume of this market than the overall level of imported cars. At present, the sales of parallel imported vehicles have already accounted for 14% of the total sales of imported vehicles. There are more opportunities to seize the market share of imported cars,†said Wang Cun.
Pang Qinghua, chairman of the giant group, told the Economic Observer News reporter: “The sales volume of huge parallel imported cars has exceeded the millionth level in 2017. For models like the BMW x5, the tariff will drop by about 60,000 yuan, plus its own The price is much lower than the Chinese version, and the competitiveness will be highlighted."
It is worth mentioning that BMW will further reduce the proposed retail price of the 79 tax-related parts and components involved in the announcement from July 1st, thus opening up the prelude of the host manufacturers to adjust the price of imported spare parts. "The reduction in the prices of imported spare parts is conducive to the promotion of new car sales, so that consumers feel that car repairs and car maintenance are inexpensive, and play a catalytic role in consumer decision-making," said Li Yanwei. However, the final result has not yet emerged. At present, no OEM has announced a reduction in the price of parts and components.
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