Imported cars sell 460,000 domestic million abroad

Mr. Xin, who is working in Canada, recently purchased a new Audi Q7 with a displacement of 3.0T from North America, and spent 78,000 Canadian dollars, or approximately 460,000 yuan. Recently, he returned to China and saw the price of imported cars of the same paragraph startled. He claimed to have surpassed 1 million yuan after claiming substantial benefits.

“The same car will only sell more than 60,000 U.S. dollars in the U.S. market, which is only one-third of China’s figure.” Mr. Yu is very puzzled by the “high price” of foreign cars entering the Chinese market.

However, Chinese consumers do not seem to blame. According to an imported car dealer, the quotation of imported Mercedes-Benz 350 cars in China was 1.398 million yuan, while the overseas retail price was about 560,000 yuan.

Some of the car spreads are even more ridiculous. For instance, the Land Rover brand is priced at more than 1.18 million yuan in mainland China, while overseas only costs more than RMB 300,000; the BMW X5 is quoted at more than 880,000 yuan in mainland China, and only overseas RMB. More than 300,000 yuan, the difference is almost 3 times.

Why is the price difference so great for the same model? For many years, foreign automakers have been vague, claiming that the high taxes on imported cars in China led to higher prices. Is this true?

"Imported cars need to pay three kinds of taxes, namely, tariffs, consumption taxes and value-added tax. According to China's tax rate, imported cars with a displacement of more than 4.0 liters are levied at the highest rate of one tax, and the prices are doubled after tax payment; but the vast majority are imported. Cars did not come to this displacement, taxation is lower than this tax rate, but their sales price in China is extremely high.” Rao Da, general secretary of the passenger car market information association frankly said, “The financial crisis in previous years, many foreign brands The car has survived the storm by relying on the mainland to gain profits."

Shen Jianjun, executive vice president and secretary-general of the China Automobile Dealers Association, said that the most prominent manifestation of the alleged monopoly is that the sales price remains high and the company’s profits have clearly exceeded the global average.

In general, the profits of foreign automakers selling high-end cars in mainland China are about 30% higher than the international average. There is no market monopoly. Where's the profits? Rao Da said.

Not only in the sales cycle, but also in the after-sales maintenance and repair link, imported cars are highly monopolistic. "Such as spare parts supply is also highly controlled by foreign automakers, which can only be sold in 4S stores, and the prices have been multiplied several times. Another example is that if a car repairs the paint at an ordinary garage just a few hundred yuan, it will take two or three to a 4S store. Thousand yuan, of which the profits are self-evident," said Rao Da.

According to Xinxing Xin, Director of the Electrical and Mechanical Services Division of the Shanghai Municipal Commission of Commerce, in addition to strong market demand leading to firm prices, an important reason is that foreign companies have improperly used the "protection" of certain laws and regulations in Mainland China.

He introduced that after China's accession to the WTO, a large number of imported cars were introduced. In order to regulate the mainland automobile market, in 2005 the "Automotive Industry Policy" and "Administrative Measures for the Implementation of Automobile Brand Sales" were issued. The 4S stores are generally implemented in the field of imported automobile circulation distribution services. Basic single mode.

“Some foreign companies have abused this regulation and have controlled the pricing right, parts supply, and after-sales service through overseas distributors, resulting in very high prices for imported car prices and parts repairs,” said Yan Xinxing.

Shen Jianjun said that in mainland China, there is only a single 4S shop channel from car sales to spare parts service. Therefore, from the perspective of product pricing, spare parts distribution, and business policies, foreign companies have the final say, and it is easy to form a vertical monopoly.

“Foreign manufacturers in order to control the market price, set a minimum price, dealers will be severely punished once they break through, apparently suspected of price monopoly.” Zhang Min said that with the rapid development of the domestic automobile industry, the market has gradually become rational, importing The time when the car was suspected of price monopoly was also a matter of time.

In view of the need for improvement in the policies concerning imported automobiles, industry insiders such as Xinxing Xinxing called for the adjustment of the current "Automobile Industry Policy" and "Administrative Measures for the Implementation of Automobile Brand Sales" as soon as possible to create a fair competitive trading environment.

Experts suggest that anti-monopoly investigations on imported cars should be conducted to investigate price manipulations that restrict competition, especially for profit-making behaviors, and must be squeezed out of market transactions.