The price difference between domestic and foreign imported cars

Reported by CCTV, the same model imported cars sold in China 1.339 million, while in the United States only about RMB 35 million, the country is not only more than 100 million higher than foreign countries, but also increase! Salesmen say that tariffs are high, really? An ex-factory price of 520,000 yuan imported cars, plus all taxes and fees, but also 1.3 million, while the domestic 4S shop, the minimum to sell 1.89 million yuan! Exorcism!

Observed luxury car was "antitrust investigation"

Is it a disaster of high profits? China’s “Anti-Monopoly Law” does not object to the dominant market position of operators and opposes monopolistic behaviors in which operators abuse their dominant position.

Whether or not this “anti-monopoly investigation” is related to the profits of auto companies, the high profit of imported vehicles has always been the default situation in the auto industry.

In fact, all along, the larger profit margins of imported cars are the consensus in the industry. There are not many cases where imported car models have increased their prices due to tight supply. “Zhang Zhiyong analyzed that with the slowdown in the growth rate of the automobile market in recent years, the competitive pressure on the imported car market has gradually increased, which has led to a drop in the overall imported car market price level, which naturally leads to a consumer market. The idea of ​​high profits for imported car companies.

For the outside world, import-brand car makers, who are in the forefront of public opinion, are also quite content. Ms. Yang from the Ministry of Public Relations of BMW China stated: “According to BMW’s annual report, our annual EBIT margin is about 9% to 11%. However, at present, the industry’s profit standards have not been defined. Therefore, companies cannot respond to the 'high profits' that the outside world has discussed."

In addition, the relevant person in charge of a Japanese high-end brand believes that factors such as inconsistent costs of car sales at home and abroad, inconsistent operating costs of distributors, and inconsistent taxation between China and other countries will cause the Chinese market to be inconsistent with terminal car sales prices in other countries. The person in charge also said that due to the current changes in the supply and demand relationship in the auto market and the increase in price cuts in the terminal market, it is simple to judge that automakers have great profit margins, and should also consider market input costs, corporate operating costs, taxes, etc. The expenses are also increasing.

Insiders believe that according to China's tax rate, imported cars need to pay three kinds of taxes, namely, tariffs, consumption tax and value-added tax. Imported cars with a displacement of more than 4.0 liters are levied at the highest tax rate, and the price after tax is more than doubled; the average tax amount of 3.0-4.0 litre imported models is 95% of the price; and the 2.5-3.0 litre imported car The average tax amount is 66% of the price. However, at present, the price of most imported cars is 2-3 times that of foreign models. Therefore, the profit margins that companies can obtain are still large.

In response to this, according to an imported car industry practitioner in China, “In China's imported car companies, the import, sales, and after-sales services are generally handled by the general agent, and then the general agent develops distributors in various regions of the country. This also means The total dealership of car brands has absolute dominating power over the sales of other dealers, so the terminal sales price of imported cars will also be constrained by the general agent and car manufacturer. To solve this problem, it is necessary for the government to solve the problem. And car associations to investigate and specifically understand the whereabouts of the maximum profits of imported car companies and dealers, so as to fundamentally change the price structure of imported models."

Recently, it was reported that the National Development and Reform Commission has commissioned the China Automobile Dealers Association to investigate whether the automobile industry has violated China's "Anti-Monopoly Law," and this investigation may become the normal work item of the China Automobile Dealers Association in the future. one. Prior to this, China's imported car prices were cited as the highest in the world, causing a monopoly question.

The specific items investigated include: Whether the automobile manufacturer has set a minimum sales price for the distributor, whether it is forbidden for dealers to cross-regional sales, and whether it specifies the lowest price for parts and components, etc.

In response to the NDRC's anti-monopoly investigation of the automotive industry, the reporter was confirmed by Luo Lei, Deputy Secretary-General of the China Automobile Dealers Association. Luo Lei said that since last year, the China Automobile Dealers Association has been authorized to set up a special investigation team to investigate the anti-monopoly issues in the automotive industry and submit periodic reports to the NDRC. Now, anti-monopoly investigation has become one of the routine tasks of China Automobile Dealers Association.

In response, relevant staff from the National Development and Reform Commission also told reporters that the anti-monopoly investigation was initiated by the Price Supervision, Inspection, and Anti-Monopoly Bureau under the National Development and Reform Commission. This behavior is a collective investigation for many industries, not individual ones. The independent behavior of the industry.

This year, the National Development and Reform Commission’s anti-monopoly investigations and penalties issued have added more than the past five years. Only recently, the National Development and Reform Commission has issued anti-monopoly fines for industry giants such as milk powder and gold jewelry. Xu Kunlin, director of the State Anti-Monopoly Bureau, also stated that the anti-monopoly investigation will place the next target in the oil, telecommunications, automotive, and banking industries that are closely related to the people. Through the investigation of the National Development and Reform Commission, it can be seen that the government departments have considered the rapidly developing automobile industry in recent years as the key target of the new round of rectification.

Zhang Zhiyong, an analyst in the automobile industry, believes that the reason for the high price of imported vehicles is indeed due to the change of supply and demand in the market. However, in recent years, the auto market has abused market dominance, restricted regional sales, and jointly established regional sales prices.

Earlier, the person in charge of the price supervision and inspection of the National Development and Reform Commission and the Anti-Monopoly Bureau stated that China’s “Anti-Monopoly Law” does not object to the dominant market position of operators, and it opposes monopolistic behaviors in which operators abuse their dominant market position. However, since the implementation of the "Anti-Monopoly Law" in 2008, no car manufacturer has been punished for it.

For the outside world, import-brand car makers, who are in the forefront of public opinion, are also sceptical. Ms. Yang from the BMW China Public Relations Department said: “According to BMW’s annual report, our one-year EBIT margin is about 9% to 11%. However, at present, the industry’s profit standards are not defined, so companies are also It is impossible to respond to the 'high profits' discussed by outsiders."

The relevant person in charge of a Japanese high-end brand believes that factors such as inconsistent costs of car sales at home and abroad, inconsistent operating costs of distributors, and inconsistent taxation between China and other countries will cause the Chinese market to be inconsistent with terminal car sales prices in other countries.

Insiders believe that according to China's tax rate, imported cars need to pay three kinds of taxes, namely, tariffs, consumption tax and value-added tax. Imported cars with a displacement of more than 4.0 liters are levied at the highest tax rate, and the price after tax is more than doubled; the average tax amount of 3.0-4.0 litre imported models is 95% of the price; and the 2.5-3.0 litre imported car The average tax amount is 66% of the price. However, at present, the price of most imported cars is 2-3 times that of foreign models. Therefore, the profit margins that companies can obtain are still large.

In response, an import vehicle practitioner in China said: “The terminal sales price of imported cars will also be constrained by the general agents and car manufacturers. To solve this problem, it is necessary for government agencies and auto associations to investigate. Knowing where the maximum profits of imported car makers and dealers are, in order to fundamentally change the price structure of imported cars."