What is the tariff on imported cars?
1 Answers
Currently, the tariff on imported cars is 15%. Starting from July 1, 2018, the import tariffs on complete vehicles and auto parts were reduced. The tariff rates for 135 tariff lines on auto parts with a 25% rate and 4 tariff lines with a 20% rate were lowered to 15%. The tariff rates for 79 tariff lines on auto parts with rates of 8%, 10%, 15%, 20%, and 25% were reduced to 6%. The reduction in import car tariffs has the following benefits: 1. Promote the development of the domestic automotive industry: After several 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. Promote 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 independent brands will accelerate their transformation and upgrading, also driving supply-side structural reform in the automotive industry. 3. Stimulate consumption: With the deepening of reform and opening-up, reducing import car tariffs helps expand imports and domestic demand while meeting the needs of domestic consumption upgrades. The reduction in the terminal prices of imported cars will inevitably pose a certain threat to joint venture and independent brands in the same segment. Therefore, lowering prices and improving product quality will be the path for joint venture and independent automakers, which is clearly more beneficial to consumers.
