Why Are Parallel Import Cars Cheaper?
1 Answers
Parallel import cars, also known as parallel trade import cars or simply parallel trade cars, refer to vehicles purchased by traders from overseas markets and introduced into the Chinese market for sale without authorization from the brand manufacturers. The reason they are cheaper is that they bypass the multiple price markups by intermediate dealers, among other factors. The advantages of parallel import cars include the following: 1. Significant price advantage: Parallel import cars circumvent sales channels such as general distributors, regional dealers, and 4S stores, eliminating many intermediate links. Moreover, parallel import car dealers are not restricted by manufacturers in pricing, giving them more freedom, which results in substantial price discounts. Typically, parallel import cars are 10% to 20% cheaper than China-spec cars. 2. Model and delivery time advantage: Sometimes, when new cars are launched overseas, they may not be immediately available in China due to the automakers' strategic plans or domestic certification processes. However, parallel import cars have a natural advantage in this regard, as they can be freely purchased overseas and then shipped to China for sale, significantly reducing the waiting time for new models. 3. More diverse model configurations: Another advantage of parallel import cars is the ability to purchase overseas models not available in China. Generally, to align with the Chinese market positioning strategy, automakers make certain adjustments or modifications when importing overseas models to China. In contrast, parallel import cars are directly imported from regions such as North America and the Middle East, and their configurations may differ from those of China-spec cars.
