A sudden change in tariff resulted in an 87% fall in Chinese car imports
According to the data from China Automobile Dealers Association (CADA), Chinese car imports have fallen by 87.1 percent in June from the previous year to 15,000 vehicles.
Automakers have delayed the shipments before tariff cuts on vehicles manufactured outside China.
On Monday, the data from CADA also showed that the sales of foreign-made vehicles fell by 22.1 percent to 451,971 vehicles in the first half of 2018. The association has not yet published the July figures.
The Chinese government in May announced that it would cut the imports tariffs to 15 percent from 25 percent for automobiles and car parts from July 1st.
Whereas there was a 40 percent rise in tariffs on vehicles imported from the United States.
Wang Cun, director of the China Automobile Dealers Association (CADA) import committee said that “June was the most impacted month and many car dealers/manufacturers held back their import orders and decided not to import vehicles until July 1.”
From the data published by China Association of Automobile Manufacturers (CADA), the country imported around 1.25 million vehicles in 2017.
Toyota Motor Corp.said that they would look to adjust the prices of vehicles in China after the announcement of the tariff cuts.
Categories: Automotive News