China Cuts Autos and Parts Import Tariffs
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Beijing, China May 22, 2018; REUTERS reported that China announced it will Import tariffs will be cut to 15 percent from 25 percent for most vehicles from July 1, the Ministry of Finance said on Tuesday, adding that this was part of efforts to open up China’s markets and spur development of the local auto sector. A small number of imported trucks are taxed at 20 percent currently.
Import tariffs for auto parts would be cut to 6 percent from mostly around 10 percent, the ministry said in a statement.
The move will be a major boost to overseas carmakers, especially helping premium brands such as Germany’s BMW (BMWG.DE), electric car maker Tesla Inc (TSLA.O) and Daimler AG’s (DAIGn.DE) Mercedes-Benz close a price gap on local rivals.
“Benefits are huge for our business, especially Infiniti,” said a Yokohama-based executive at Nissan Motor Co Ltd (7201.T) referring to the Japanese firm’s premium car brand.
Another executive at the firm’s Chinese joint venture said it was “great news” but that the biggest beneficiaries would likely be German luxury carmakers, which also include Volkswagen AG’s (VOWG_p.DE) Porsche and Audi (NSUG.DE) brands.
