Science and technology

Expanding Openness and Accelerating China's Automotive Industry Transformation

Automobile industry transformation and upgrading is the key
——Imported vehicles account for about 4% of the Chinese market, and the tax reduction will have limited impact on the domestic auto industry in the short term
Apart from how much benefit consumers can get, the discussion is equally as to what effect tariff cuts will have on the domestic auto industry.
Look at the quantity first. According to data released by the China Automobile Dealers Association, China's auto imports totaled 1.216 million vehicles in 2017, an increase of 16.8% year-on-year. According to the statistics of China Association of Automobile Manufacturers, China's auto production and sales in 2017 were 29.015 million and 28.889 million vehicles, respectively. Imported cars account for about 4% of the entire Chinese market.
Look at the structure again. According to statistics from a number of agencies, about 80% of the imported cars in 2017 were concentrated at more than 250,000, while domestic self-owned brands and joint-venture brand cars were mostly under 250,000 yuan. Therefore, imported cars and domestically produced cars show a stronger differentiated competitive relationship, with a smaller overlap in consumption.
"The reduction in tariffs may have an impact on the quantity and price of imported vehicles, but the intensity will not be too great." Shi Jianhua said that currently almost all product lines and conventional models, joint ventures or domestic brands have production, domestic imports of cars The demand is not high. At the same time, imported cars are mostly high-grade, luxury, and personalized models, and this part of consumers is not so sensitive to price, and the impact of tariff cuts is limited.
However, in the long run, the trend of further decline in the prices of imported cars may still bring pressure on some domestic cars. As consumption upgrades and domestic cars continue to develop toward high-end, market competition will become more intense, which will also prompt domestic cars to More high quality, higher performance and other directions.
“The sense of urgency for domestic brands will certainly be strengthened. With tariffs continuously declining, we Chinese autos and brands have to improve their competitiveness and meet the challenge of imported cars, mainly focusing on products.” Shi Jianhua said.
Related companies have felt the pressure. A person in charge of an automobile accessory manufacturer in Yangzhou, Jiangsu, told reporters that under the background of tariff cuts, the price reduction of automobiles is imperative, which will bring challenges to the domestic automobile manufacturing industry and supporting enterprises, and pay close attention to cost management and transformation and upgrading. Sex is stronger.
From a short time ago, the state relaxed the restrictions on the ratio of foreign-invested shares in the auto industry, and this time the tariff was lowered. The auto industry ushered in a new situation of further opening up. As the relevant person in charge of the Office of the Customs Tariff Commission of the State Council said, at present, a new generation of information and communication, new energy, new materials and other technologies and the automotive industry have accelerated integration, the industrial ecology has undergone profound changes, and the competitive landscape has been completely reshaped, hoping to open up opportunities. The Chinese auto industry can strengthen competition, adjust the structure, and accelerate the transformation.