On September 29, after the official opening of the Shanghai Free Trade Zone, “SAIC Trading†and Shanghai Pudong Automobile Sales and Service Co., Ltd. (hereinafter referred to as “Porscheâ€) became the first enterprises to obtain business licenses and became the first batch of “eat†in China. Crab car company.
The analysis pointed out that under the existing policies of the Free Trade Zone, the entry of domestic car companies will help promote overseas strategies and accelerate the development of car companies. Similarly, the entry of multinational brands is conducive to further reducing the cost of trade, transportation, warehousing, etc., and is conducive to the development of auto financing leasing business. It is reported that in addition to SAIC and Porsche, multinational auto companies are interested in entering the free trade zone.
Promote Chinese car companies to "go out"
According to the "China (Shanghai) Pilot Free Trade Zone Overall Plan", the Free Trade Zone will create a more flexible and convenient regulatory and service environment for enterprises, improve the operational efficiency of enterprises, reduce the operating costs of enterprises, and provide more for international investment and financing. Good platform. On this basis, a highly efficient logistics industry will be formed in the park, and sea and air transport will speed up the turnover of goods and promote the re-export and shipping services.
According to the current policy, SAIC Motor Group can reduce the cost of capital, trade, transportation and warehousing for SAIC's international trade business by more than 20%. In the process of implementing the overseas strategy, SAIC's demand for offshore finance, international trade, and cross-border investment is increasing. The establishment of the Free Trade Zone provides opportunities and conditions for SAIC to build and form a strong international business capability.
According to the plan, SAIC Commerce will first build a 100,000 square meter auto parts operation center in the free trade zone, forming 500,000 sets/year of operational capability. In the future, the company will further develop into an “international trading platform†and “non-manufacturing class†of SAIC.
The overseas regional marketing investment platform provides value-added services for the import and export business of parts, international financing, settlement, investment, etc. for SAIC UK, SAIC Thailand and other overseas regional markets. According to the Group's overseas market development plan, it combines traditional parts. The natural growth of import and export business will not rise rapidly from the scale of the business of the trade zone. It is expected to exceed 20 billion in five years and reach more than 100 billion by 2030.
Statistics show that after the rapid growth of domestic auto exports in the previous two years, auto exports have faced a major adjustment this year. According to customs data, there was a significant decline in June-August this year. Oceania fell 43% year-on-year, Africa fell 41% year-on-year, and Asian market fell 25%.
This also means that in the fierce market competition, domestic automobile exports are still unstable, which is in urgent need of policy support to promote the stable and healthy development of automobile exports. Moreover, with the continuous growth of China's automobile industry, some joint venture car companies have become global production bases, and the establishment of the free trade zone will also promote the development of related exports.
SAIC said that in the process of implementing the overseas strategy, SAIC's demand for offshore finance, international trade, and cross-border investment is increasing. The establishment of the Free Trade Zone provides opportunities and conditions for SAIC to build and form a strong international business capability.
Or drastically reduce the cost of imported cars
The establishment of the Shanghai Free Trade Zone is beneficial to the “going out†of car companies on the one hand, and is also conducive to reducing the cost of imported car companies on the other hand. In the list of the first batch of companies, in addition to SAIC, Porsche is also listed.
According to the current positioning of the Shanghai Free Trade Zone, it is a free trade zone in the narrow sense, that is, any goods imported in the free trade zone, import duties and other taxes are considered to be outside the customs and free from customs supervision. system. This means that, according to international practice, the Shanghai Free Trade Zone acts as a passageway outside the border, and the goods in the zone can enter and leave the free trade zone without the freedom of customs supervision.
According to the analysis, from the perspective of automobile import enterprises, once they enter the free trade zone and set up warehousing in the zone, they can further reduce their costs. Vehicle companies can assign vehicles or spare parts to customs in a timely manner according to their own market changes.
"In a way, as long as the goods do not leave the free trade zone, there is no need to pay taxes, which gives car companies a lot of freedom." Industry insiders pointed out that car import companies will also have more scheduling space. Will greatly reduce costs.
It is reported that in addition to SAIC and Porsche, BMW, Rolls-Royce and Jaguar Land Rover have expressed their intention to enter the Shanghai Free Trade Zone and set up sales and display areas in the park.
"50% ratio" red line is still high hanging
However, the free duty-free entry and exit of imported cars in the free trade zone will bring shock to domestic joint-venture car companies in the future? The analysis pointed out that the development of free trade zones and zero-tariff imported cars are only active in a very small park, and the impact of the most comprehensive automobile industry is currently effective. Shen Hui, chairman of Volvo Global and China, also believes that the opening of the free trade zone will not cause "big adverse effects" on cars.
Moreover, according to the “Special Management Measures for Foreign Investment Access in China (Shanghai) Pilot Free Trade Zone (2013)†promulgated by the Shanghai Municipal Government, the automobile manufacturing industry is among them, clearly pointing out that the Chinese and foreign joint ventures of automobile vehicles
The proportion of Chinese shares of a production enterprise shall not be less than 50%; the public stock of a stock-listed vehicle shall be sold to a legal person. One of the Chinese method holders must be relative to the controlling share and greater than the sum of the foreign-funded legal person shares; the same foreign company may establish less than 2 domestically ( Contains 2 joint ventures that produce similar vehicle products.
In addition, for car companies, in addition to helping to reduce the cost of import and export, the free trade zone can also greatly promote the development of auto finance leasing companies.
According to the provisions of the “General Plan of China (Shanghai) Pilot Free Trade Zone†issued by the State Council, the project subsidiaries established by the financial leasing companies or financial leasing companies registered in the free trade zone are included in the pilot scope of the financial leasing export tax rebate.
SAIC said that after SAIC commerce entered the free trade zone, the SAIC Middle East and South American sales and service companies under planning will also obtain more convenient international investment and financing channels through the free trade zone platform.
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