Lot of vehicles. Photo: iStock
Lot of vehicles. Photo: iStock

After China released its latest policy of reducing auto import tariffs on Tuesday, some foreign automakers have already announced price cuts, The Paper reported.

The Customs Tariff Commission of the State Council issued an announcement that, starting from July 1, 2018, the tariffs for whole vehicles with tax rates of 25% and 20% respectively will all be reduced to 15%, a decline of 40% and 25%.

Meanwhile, tax rates for auto parts, which are 8%, 10%, 15%, 20% and 25% respectively, will be reduced to 6%, with the average tax reduction rate of 46%.

After the tax reduction, the average tax rate for auto vehicles in China will be 13.8%, and that of parts and components 6%, which is in line with China’s auto industry.

BMW China, Volvo Cars, FAW-Volkswagen, Porsche and Toyota all said that they will make price adjustments as soon as possible.

Tesla has already adjusted selling prices of its six models sold in China, with price cuts ranging from 48,000 (US$7,538) to 90,000 yuan.