Parallel import of cars gaining momentum
August 3, 2015 Category Automotive, Weekly
The China (Shanghai) Pilot Free Trade Zone’s pilot program on parallel imports of cars, which allows dealers to purchase cars directly from abroad, has evoked good response and is likely to be extended to more areas. The Ministry of Commerce (MOFCOM) gave the green light to 17 companies for parallel import of cars in February. Upto now, about 228 cars have obtained automatic import license approval under the parallel import scheme, according to the Shanghai Municipal Commission of Commerce. Under parallel imports, cars are brought directly from overseas to bypass distributors and dealerships so that they can be sold at discounts of 10% to 25%. According to Chen Jiaxiong, Deputy Director of China Yongda Automobile Services Holdings’ Public Relations Department, parallel-import cars have been well received by the consumers. The parallel imports, combined with the decline in demand for imported cars beginning at the end of last year, led to a price drop of imported cars in China by an average 11.8% in the first six months, according to Sinomach Automobile Co. The Ministry of Commerce has said that it would accelerate the experiment of parallel-import cars to free trade zones in Shenzhen, Tianjin, Guangdong and Fujian.
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