China lowers import tariffs on vehicles from 25% to 15%

The plans to lower vehicle import tariffs announced by Chinese president Xi Jinping in April are getting more definite: According to an announcement by the ministry of finance, the tariffs for personal vehicles will be lowered from 25 to 15 percent on the 01. July.

The new tariff level will also apply to trucks, which were tolled at 20% previously. The tariffs on particular vehicle parts will also likely drop from 10% to 6%.

With the statement, the Chinese president has first set concrete numbers, after having issued a statement at the Asian Economic Forum in Bo’ao to lower the tariffs “significantly” this year. The previous tariffs of 25% have been standing for ten years.

The lowering of import tariffs is partially also due to negotiations between the People’s Republic and the USA, which aim to prevent a trade war between the major economic powers, according to Bloomberg. German car manufacturers estimate that the effects for them alone will include an additional profit of 3 to 4.5 billion euro.

The Chinese government announced a month ago that they planned to drop the joint venture requirement for foreign car manufacturers. The ruling belongs to the central protectionist instruments of the government. For manufacturers of EVs and plug-in hybrids, the requirement will drop this year, while non-renewable utility vehicles will be allowed in 2020 and personal vehicles in 2022.

Update 23.05.18: Tesla has reacted to the newest announcements by the Chinese government lowering import tariffs, by lowering the prices for the Model S and Model X in China by about 6%. Tesla also further announced that the rebates will take effect even before the new import tariffs are put into effect.

Furthermore, Tesla has hired foormer Snap manager Stuart Bowers, who will help develop autonomous driving software for the company, among other projects.

reuters.com, bloomberg.com, reuters.com, europe.autonews.com (Update)