Photo: AFP
Photo: AFP

Ford Motor Company and the Lincoln Motor Company have joined many other foreign vehicle brands in making immediate price cuts, on the heels of China’s drastic reduction in its automobile import tariff, The Paper reported.

Ford China said that the adjusted retail price of imported models will be reduced by 15,000 (US$2,351) to 35,000 yuan (US$5,487).

Lincoln China has also reduced the starting price of its passenger vehicles to 261,800 yuan, while its SUV model has been cut to 275,800 yuan. The price reduction of the entire series of models will reach 20,000 yuan to 60,000 yuan, a decrease of 5% to 7%.

The Chinese government issued an announcement on Tuesday 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%, leading to an extensive price cut by foreign auto brands, including Tesla, Mercedes-Benz and Volvo.

CITIC Securities expects that the consumption of import vehicles will increase to 1.5 to 2 million vehicles on the existing basis.

In 2017, the sales of passenger cars in China hit 24.718 million, while imports of foreign passenger cars were 1.24 million, accounting for only 5% of the total volume.