In response to tariff adjustments, imported cars ushered in price cuts.

Up to now, according to incomplete statistics, more than 20 car companies have responded to the adjustment of the selling price, of which 9 have explicitly announced the price cuts.

On May 22, the Customs Tariff Commission of the State Council issued an announcement saying that with the approval of the State Council, starting from July 1st, 2018, the tariffs on vehicles for vehicles with tax rates of 25% and 20% respectively will be reduced to 15%; and the tax rates will be 8 respectively. %, 10%, 15%, 20%, 25% of auto parts tariffs fell to 6%. After the tax reduction, the average tax rate for China's auto vehicles is 13.8%, and the average tax rate for parts and components is 6%.

Although the new tariff reduction policy has been implemented since July 1 this year, a number of car companies have already “honored the benefits” ahead of schedule.

On the evening of May 22, Tesla fired the first shot. The official announcement of the entire product price cuts ranged from 48,000 yuan to 90,000 yuan. It took effect that night. In addition, undelivered vehicles are delivered at new prices, including existing vehicles.

Subsequently, luxury car companies responded in batches to the New Deal for Tax Reduction.

On May 24th, Volvo took the lead in announcing that it will reduce the proposed retail price of imported model manufacturers from now on, and will refund the full amount of tax reduction to consumers. Among them, the flagship luxury SUV Volvo XC90 maximum decline of 10.02 million; luxury off-road wagon V90CC maximum decline of 45,000 yuan.

Subsequently, Mercedes-Benz, BMW, and Audi in the luxury car sector also followed suit and announced that they had adjusted their prices.

On the same day, Mercedes-Benz first updated the official website to publicize the new product retail price: covering Mercedes-Benz, Mercedes-Maybach, Mercedes-AMG and smart brands. Among them, the Mercedes-Benz's decline of up to more than 10 million, Mercedes-AMG's highest drop of 256,000 yuan.

According to the data released by BMW, the price adjustment range is now between 16,000 yuan and 162,000 yuan in more than 100 models that are currently downgraded. The minimum factory suggested retail prices for the BMW 4 Series and BMW 6 Series GTs were adjusted to 369,800 yuan and 640,900 yuan, respectively. The models including the X5 and 6-series GTs had a decline of more than 50,000 yuan.

Audi announced that the maximum price adjustment program has also reached 165,000 yuan, including its A, Q, R three models.

As of now, the highest price reduction for bicycles is the Jaguar Land Rover brand, and its F-TYPE top model is priced at 392,800 yuan. Land Rover Range Rover Edition is lowered by 200,000 yuan.

However, according to the price drop of Jaguar Land Rover officials, not all models have undergone price adjustments, and prices of some entry models and hot models have fallen by no more than 1% or have not even adjusted their official prices.

In addition, the five luxury car companies Jeep, Lincoln, Lexus, Infiniti, and Alfa Romeo have clearly adjusted their prices.

The Jeep official declared that the official price of the imported Grand Cherokee fell by 5-65 million yuan.

Infiniti said that the price adjustments for the eight models of imported models in the entire department have reached 7.6%, of which the price of QX80 has dropped by 60,000 yuan to 1,138,000 yuan.

Lexus, which has not yet established a plant in China, lowered the price of all models, up to a maximum of RMB 109,000.

Lexus is most likely to be the biggest winner after the reduction in import taxes because it has the largest sales among several fully-imported car companies and does not need to worry about the impact of imported car prices on the brand's joint venture products.

Along with the price adjustment of luxury cars, imported vehicle manufacturers have ushered in price cuts.

Ford and its luxury brand Lincoln also issued a price reduction announcement later in the afternoon on the 24th, in which Lincoln's drop reached 20,000 yuan to 60,000 yuan. Dongfeng Nissan Motor Co., Ltd. lowered the price of the 5.6L version of its flagship SUV tuner 5.6L, and Mitsubishi announced that Pajero lowered its price by 4.5-6 million yuan.

From the point of view of decline, as the proportion of tariff levied is reduced, the higher the vehicle price, the higher the profit, but the overall price reduction range is concentrated within the range of 7%-8%. Companies such as Volvo Cars will honor the tax credits in full, and brands such as Jaguar Land Rover have also set different discount rates according to the models.

In addition, there are many car companies including Subaru, actively responding, will lower the price of the product, but has not announced details of the price adjustment, which also includes Porsche, Lamborghini, Maserati and other ultra-luxury car prices.

On May 22, Xu Haidong, assistant secretary general of the China Association of Automobile Manufacturers, said in an interview with Yu Xin reporter that the adjustment rate of the entire vehicle tariff is a performance of “promise commitment”, and it is a considerable proportion of downward adjustment, not a large percentage reduction. Bringing down the price transferability of domestic automotive products, but also leaving room for the development of domestic brands."

Guoxin Securities said in its research report that tariff adjustments have limited impact on the domestic automobile market: On the one hand, the average price of the top 50 imported models exceeds 700,000 yuan/vehicle, and the current domestic domestic price range of 150,000 to 250,000 yuan/vehicle mainstream models. There is a big gap; the price has dropped to 300,000-35,000/vehicle models and there are few models, and there is a dislocation competition with domestic joint venture brand models. Therefore, the tariff reduction has a limited impact on the domestic automobile price system.