In 2005, a series of policy factors affecting the prices of imported vehicles will be promulgated and implemented starting from the beginning of the year. In the end, the impact of these policy factors on the import of cars is significant. Recently, relevant parties have analyzed the trend of the imported car market this year. 1 Reduction of Tariffs on January 1 From a policy perspective, the reduction in tariffs on January 1 and the annual reduction in tariffs since 2001 are not much different: the average annual reduction is 5.9%, of which emissions are 3 liters and below. The tariff for gasoline cars in 2005 will be reduced to 30%. Therefore, the impact of the tariff alone on the imported vehicle market will not be too great. The analysis believes that due to the year-on-year tariff reduction since 2001, the imported auto market has spent a long period of “adaptation periodâ€. During these years, the import car market has undergone structural changes, and the imported car market has become increasingly Trends toward large-displacement, small-batch business ideas, such as Caramel, Cool, style and other models due to the substitution of domestic cars, operating profit has dropped to the lowest point. In addition, the annual tariff reductions are implemented on January 1st each year, and the market's early regulatory role has reduced the impact of tariff reductions to a minimum. Therefore, reducing tariffs alone has made it difficult to bring benefits to consumers who purchase imported cars. 2 Quota cancellation on January 1, 2005 In December last year, the relevant people of the Ministry of Commerce affirmed the fact that the quota was cancelled in January this year. According to the “Implementation Rules for the Administration of Issuance of Auto Import Licenses for Automobile Products†issued by the Ministry of Commerce website this week, which stipulates that if an imported automobile is used for sales, it is required to submit the vehicle brand distribution authorization certification materials. In other words, the management of imported cars will be changed from a quota system to a issuance system, thereby eliminating the restrictions on the number of original advanced ports. According to the analysis, the impact of this policy will be manifold. On the face of it, this policy has caused consumers an impression that due to the cancellation of quotas, prices will fall sharply this year, but the actual situation is that in 2005 the brand stores will become the main channel for the sales of imported cars and they will not get the traditional import authorization of foreign car brands. Car dealers will have a hard time surviving. This policy means that there will be a fundamental change in the main channels for operating imported vehicles in the future, and many sales companies that have not been able to obtain distribution rights will be excluded, and the operating channels of imported vehicles will be narrowed. Therefore, the analysis considers that the cancellation of imported vehicle quotas should be viewed from both positive and negative perspectives. It cannot be considered that the quota cancellation means that imported vehicles are fully “openedâ€. 3 The policy of landfall and taxation is implemented in January this year. In 2004, for import car dealers, “land tax and taxation†was adopted. Rumors of this policy are most influential, and this policy will increase the operational risks and costs of imported car dealers "infinitely." According to the "Automotive Industry Development Policy" stipulations, from 2005 onwards, all importation port bonded areas must not store automobiles for the purpose of entering the domestic market. For a long time, China has implemented a bonded policy on imported cars. After the imported cars arrive in Hong Kong, they are first stored in the bonded area. The dealers wait until they have a suitable exchange rate or have a buyer, and then pay taxes and out of the warehouse. The funds do not occupy much pressure, and the risk is not great. However, after the implementation of the tax payment policy, the imported vehicles used for sales must be tax-declared and brought up within seven days of arrival in Hong Kong, and the dealers' operating costs and operational risks are greatly increased. Since the second half of last year, due to the unpredictability of capital costs and risks, some small import car dealers have begun to completely withdraw from the market. According to relevant sources, this policy may be implemented in the form of a "new approach to new cars and old cars." In other words, this year's newly arrived imported vehicles will adopt the land tax payment policy, and those who have already arrived in Hong Kong or issued a permit in 2004 have not yet expired, and still continue the bonded system. It is understood that since the beginning of December last year, the number of imported vehicles in the Shanghai Waigaoqiao Free Trade Zone has approached 2,000 vehicles, which is 10 times the monthly import volume in November and a record high. According to the conservative estimate of a 100,000 yuan tariff for a car, by entering the car by surprise, car dealers can save about 200 million yuan in capital investment. 4 Brand agents will postpone the implementation date. The relevant person of the Ministry of Commerce has stated that the brand agency policy will postpone implementation. According to the "Brand Sales Management Measures (Draft for Comment)", import brand agency requires imported brands to set up a general agent in China. This undoubtedly concluded on the two core issues of access rights for channel and market sales. However, for those dealers who did not get the agency rights of the auto brand, the Ministry of Commerce stated that it would not be forced to retract the operating right temporarily. According to the analysis, the state has introduced a policy that it is hoped that a sales network will be formed between the distributors of the same car brand, so that customer complaints will fall. In addition, the policy is only a programmatic document. The government, including the industry and commerce, will not force the cancellation of dealers with no brand agency rights. Therefore, whether you obtain or not obtain a brand agency, as long as you have a purchase channel, you can also manage automotive products. However, some people said that after the implementation of the brand agency system, the purchase channels will inevitably not be affected, then there must be some weak, under-resourced distributors forced to withdraw. He Dengfeng
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