China auto imports soar on new tariff rates


FE Team | Published: August 11, 2018 14:04:44 | Updated: September 01, 2018 13:36:42


Representational Image

China's imports of automobiles jumped 72 per cent to 7.38 billion dollars in July after lower tariff rates went into effect, data from the General Administration of Customs showed.

According to the data, the second largest economic country of the world imported 165,000 units of automobiles and chassis, up 50 per cent year on year in the previous month.

The surge could be attributed to pent-up demand as Chinese consumers delayed purchase of cars in expectation of lower auto prices starting from July, Changjiang Securities said in a research note.

China has been opening up its doors wider to the world, with a wide range of incentives aimed at expanding imports, including cutting tariffs on vehicles and auto parts reports Xinhua.

Beginning July 1, the 20-to-25-per cent tariffs for imported vehicles were cut to 15 per cent, and duties on auto parts were lowered to 6 per cent from the previous levels of 8.0 per cent to 25 per cent.

Many auto brands including Volvo, Audi, and Lexus previously announced plans to reduce prices of cars imported to China after the tariff cuts.

Morever, China imported 29 million tonnes of coal in July, up 49 per cent year on year, the highest monthly volume since January 2014, according to the data.

The country imported the record level coal as demand for coal-fired electricity increased during the summer, according to the official data.

Share if you like