Tariff cuts further 3% for parts and components


At the "Second China Imported Automobile High-Level Forum" held on December 17, Xu Changming, director of the Resource Development Department of the National Information Center, said that the prices of domestic cars will continue to drop by a large margin next year. "The overall reason for the price reduction of domestic cars next year is oversupply."

Accelerated listing of new models. "The latecomer took first place" has become a common feature of multinational companies that have entered the Chinese auto market after Toyota of Japan.

Since the beginning of this year, the actions of multinational corporations have become more direct and obvious. In addition to expanding production capacity, they have brought their heavyweight products to the Chinese market.

The price system balance is broken. Since this year, some models have announced price cuts directly and have achieved good market expectations. For example, after the Excelle announced a price cut of RMB 23,000 on March 3, sales have remained relatively high; after the highest price reduction reached 34,000 yuan at the end of last year, Fengyun and Qiyun lowered their prices again on May 9 of this year. The market share of the market has risen before the price reduction.

The new model price "one step in place." When some of the new models were introduced this year, manufacturers announced that the price will be “connected” next year. From the perspective of some new models that will be launched next year, the pricing principle still adheres to the “one-step” strategy.

The market price is lower than the "guidance price." At present, the car market price has been significantly lower than the manufacturer's pricing. The gap between the market price and the guide price indicates that the auto market is highly competitive. In this competitive situation, consumers will expect more from prices next year. In order to stimulate demand, manufacturers can only take the initiative to lower prices in order to win more consumers.

Xu Changming believes that tariffs on parts and components will be reduced from the current 13% to 10% next year. Manufacturers will increase their cost control capabilities and foreign companies may reduce the price of CKD parts and technology transfer fees in order to strengthen the competitiveness of joint ventures. They may be manufactured for next year's automobile market. More room to cut prices.





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