What is the difference? What is the parallel import car?

Recently, with the relaxation of the national policy on parallel imported cars, a large number of import traders have flooded into the market and involved in the parallel imported car trade. These include e-commerce companies that are good at using various eye-catching promotional methods to join the online sales business. The people's perspective is once again turned to the parallel imported car business. As consumers, it is inevitably questioned whether parallel imported cars will be cheaper? What is the difference between "genuine" and traditional 4S shop selling?

What is a parallel imported car?

"Parallel import cars" generally refer to cars imported by other importers other than general distributors from the origin of the products, and are "parallel" with the authorized distribution channels of domestic official brands. Such cars generally have lower selling prices. Parallel imported cars are also legitimate products and have also entered the domestic market after 3C certification. Only a small volume, mostly adaptable changes from non-regulatory models. Because there is a direct conflict of interests with imported car companies, most of them do not enjoy vendor guarantees after the sale, and they need to separately purchase warranty service or find new ways.

Most of the parallel imported cars are operated by integrated dealers. The intuitive feeling is that after going to the development hall, you can purchase the general diversity like a supermarket and no longer be limited by the brand.

First of all, let us first look at how popular some of the popular parallel imported cars are, and how much the difference is from the models sold in the 4S shop.

In addition, the popular models in parallel import circulation are: Mercedes-Benz GL450 3.0T, Land Rover Range Rover, Land Cruiser, Toyota Sequoia/Frankfort, Ford F150 and so on.

It can be seen that the parallel imported models with good sales are mostly luxury suv, and some niche special models. This is because luxury SUVs have a high premium in the country and often have ample profit margins. This brings about a living space for parallel imported cars, which can have 10-20% of the price compared to the "large trade vehicles." The price difference.

Why is it cheaper and who's cheese?

China's imported car market is at a high price year-round, and profits have been drawn from the brand's total distributors who control the dominant power. Even after China’s accession to the WTO and the reduction of tariffs for many years, the situation has not improved. Some people say that parallel imported cars are cheap because they are "water trucks" and they do not pay taxes. Is this really true? First look at the composition of imported car prices:

In fact, according to China’s commitment to China’s accession to the WTO, since July 2006, the import tariffs for imported cars have been adjusted to the 25% market entry commitment. In fact, parallel importation is also subject to a 25% customs duty, so why are imported cars imported in parallel? Where does the price advantage come from?

1. The most important thing is that imported car companies have full control over pricing rights. To put it bluntly, the high selling price of imported luxury cars stems from the high monopoly of imported car companies regarding sales links, after-sales maintenance, and maintenance links, as well as the control of market prices.

2. Parallel import bypasses the circulation of distributors, distributors, and 4S stores. The investment in terminal construction is also much cheaper than the 4S shop model. Since the operating costs are low, the car prices will naturally be competitive.

3. Brand operation promotion fees, imported car companies as brand operators in China, also need to promote and maintain the brand, which will need to spend a lot of brand promotion and promotion costs, parallel import car is just a trader, can take the brand In the promotion of "swim", save a lot of publicity costs.

Why does the country use parallel imported cars as a pilot? Why relax the corresponding policy?

In fact, there were parallel imports before. The original car dealers in Tianjin Port and Dalian Port had long been engaged in the parallel imported car business. However, because the policy was in a small area, it was not recognized by most people. Now that policies have been relaxed, procedures have been simplified, and a list of qualified trading companies has been added. For example, the parallel imported vehicle business pilot work in the Shanghai Free Trade Zone has made clearer requirements for the vehicle circulation, sales, and after-sales service links. The purpose is to relax the policy and allow consumers to get cars to circulate. The basic guarantee of the link.

· The "Pilot Notice" for parallel imported cars in the Shanghai Free Trade Zone has made clear requirements on the main body of responsibility, quality and safety of imported automotive products, and after-sales services. The first batch of 17 pilot companies are required to fulfill the obligations of product recalls, quality assurance, after-sales services, and auto three-packs.

· At present, parallel import car business in China is mainly concentrated in Dalian, Tianjin, Ningbo Free Trade Zone and Shanghai Free Trade Zone. However, the corresponding trading company will also direct the exhibition hall to the mainland automobile market. For example, in Asia, Beijing has a separate parallel imported car showroom.

• The Inner Mongolia Autonomous Region does not support the parallel import of vehicle licenses for the time being. All other provinces support the registration of licenses.

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