Two major Chinese carmakers say lower tariffs on US-made cars aren’t a speed bump for their sales
- Great Wall, GAC Group say reduced tariffs on US-made imports are affecting luxury rather than less pricey models
- China, the world’s largest car market, is undergoing sales slump, massive change
Two of China’s biggest carmakers say they can weather Beijing’s move to lower tariffs on US-made cars imported into the world’s largest auto market, pointing out it largely affects luxury rather than the less pricey segments they focus on.
“The lowering of tariffs mainly affects higher-end cars, like those selling at over 200,000 yuan (US$30,000),” Zeng Qinghong, chairman of GAC Group, said in an interview on Friday on the sidelines of China’s annual parliamentary meeting. “It won’t affect middle- and lower-end cars much.”
Chief executive Wang Fengying of Great Wall Motor – the country’s top SUV maker – echoed Zeng in a written response to questions, saying that “the tariffs mostly affect imported cars at over 500,000 yuan”.
Both Wang and Zeng are delegates to China’s top legislature.
China’s car makers have had a tough time in recent months, buffeted by slumping sales in part set off by the US-China trade war, which dampened consumer spending. At the same time, China is also opening up its car industry to foreign players – including electric car maker Tesla of the US – to strengthen its market through competition, adding to the pressures faced by domestic players.