Starting In July, Imported Cars Will Be 10% Less In China – Win For Tesla

MAY 26 2018 BY MARK KANE 4

There is a way to purchase a Tesla for roughly 10% cheaper in China… if you can wait a month, as government announced import tariffs will be cut from 25% to 15% on July 1.

BMW 530e

It’s a first step to normalize the car business. The other is the upcoming removal of the joint venture requirements for foreign automakers.

Tesla could note a high boost in sales, as all of its cars sold in China are imported.

Read Also – Tesla Gets Approved For Business License In China

The highest boost probably will fall on the premium/luxury brands from Germany like BMW, Daimler and Volkswagen’s Audi and Porsche. In general, all companies with a high import ratio should feel the difference and narrow the gap to the Chinese brands.

Also, the import tax on automotive parts will decrease from 10% to 6%.

Because the Chinese plug-in market is bigger than all other markets combined, it will be a big boost for foreign companies to be able sell cars in volume without a barrage of taxes.

Source: Reuters

Categories: China, Tesla

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4 Comments on "Starting In July, Imported Cars Will Be 10% Less In China – Win For Tesla"

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carcus

M-aking
A-merican exports
G-reat
A-gain

From the source article:
“China’s high tariff on vehicles – versus a 2.5 percent U.S. levy – has been a key focus of U.S. President Donald Trump’s administration amid a simmering trade standoff between Washington and Beijing.

Trump has said the 25 percent tariff amounted to “stupid trade”, while auto industry leaders such as Tesla’s Elon Musk have said that Chinese restrictions on foreign auto makers created a skewed playing field.

China and the United States, however, made a breakthrough in trade talks after negotiations in Washington last week, stepping back from the brink of a global trade war and agreeing to hold further talks to boost U.S. exports to China.”

Cavaron

I thought the trade war made the lower import tariffs obsolete…?

Ron Swanson's Mustache

Hey, sorry for the off-topic post, but there’s a story over on Drive Tribe about a guy who managed to do a cross-continental African trip in a Nissan LEAF:

https://drivetribe.com/p/electric-explorer-african-challenge-HMymAiaOQiuU2iiBRGZqDw?iid=PshFQ3Y1RH2u_mJgP9ISwQ

Figured I’d share because people here would be interested.

Rebel44

Unless something changes, on July 6th US car imports to China (and quite a few other things) will be hit by extra 25% import tariff in retaliation for US tariffs on Chinese imports…