What is the tariff for imported cars?
1 Answers
Currently, the tariff for imported cars is 15%. Since July 1, 2018, China has reduced import tariffs on complete vehicles and auto parts. The tariff rates for 135 tariff lines of complete vehicles at 25% and 4 tariff lines at 20% have been lowered to 15%, while the tariff rates for 79 tariff lines of auto parts at 8%, 10%, 15%, 20%, and 25% have been reduced to 6%. The reduction of import car tariffs has the following benefits: 1. Promoting the development of the domestic automotive industry: After multiple stages of development, the industry has reached a level where it can further integrate and compete internationally. It is time to relax protective mechanisms, encourage competition between domestic and foreign automakers, and accelerate structural adjustments and transformations, thereby promoting better development of China's automotive industry under more open conditions. 2. Advancing supply-side structural reform in the automotive industry: With this tariff reduction, competition in the domestic automotive market will undoubtedly intensify, significantly increasing pressure on domestic automakers. Many domestic brands will accelerate their transformation and upgrading, which will also drive supply-side structural reform in the automotive industry. 3. Boosting consumption: With the deepening of reform and opening-up, lowering import car tariffs helps expand imports and domestic demand while meeting the needs of domestic consumption upgrades. The reduction in the retail prices of imported cars will inevitably pose a threat to joint-venture and domestic brands in the same segment, prompting them to lower prices and improve product quality, which is clearly more beneficial for consumers.
