The so-called parallel imported cars refer to those cars that are not directly authorized by the brand manufacturer and purchased directly from overseas markets and introduced into the Chinese market for sale.
Entering 2015, parallel imported cars are like the stones that are thrown into the calm water of the imported car market, which not only stimulates the splash, but also spreads more!
On April 28th, a review meeting on the after-sales service specifications for parallel imported cars was held in Beijing. “After-sales service can't keep up with the short board of parallel imported cars”, the deputy secretary of China Automobile Dealers Association, who presided over this meeting. Long Luo Lei told reporters in Nandu that with the national policy, the parallel imported cars will gradually move out of the gray area, and their sales will increase year by year, and their after-sales service problems will increasingly highlight and restrict their sustainable development. He stressed that "the purpose of this regulation is to provide guarantees for the healthy development of parallel imported cars."
In fact, the ongoing specification of after-sales service is only a small epitome of multiple efforts to try to regulate and promote the healthy development of parallel imported cars.
As early as October 1, 2014, the State Administration for Industry and Commerce announced the implementation of the "Notice on Stopping the Implementation of the Recording of Automobile Distributors and Authorized Dealers of Automobile Brands", providing policy support for dealers to carry out parallel import vehicle business activities.
Then on January 7 this year, the official website of the Shanghai Municipal Commission of Commerce issued the "Notice on the Pilot Project of Parallel Imported Cars in the China (Shanghai) Pilot Free Trade Zone." As a result, cars that have been swimming in the gray area have been imported in parallel, and finally can enter the domestic automobile sales market in a proper manner, and compete fairly with imported cars under authorized distribution.
Only after more than three months, with the announcement of the second batch of free trade zones, the Fujian-Jinjin-Tianjin Free Trade Zone, on April 21, the above three free trade zones will use the same “negative list” with Shanghai. (Special management measures for foreign investment access in the Free Trade Zone) have also been clarified. This means that the parallel imported car business, which is only carried out in Shanghai, will also be more blooming, "will promote the rapid expansion of the market size of parallel imported cars," Luo Lei said.
It is worth noting that, just as the parallel imported cars "have suddenly come to the spring breeze, thousands of trees and pears bloom", the big sticks about anti-monopoly in the imported car market are also frequently lifted. On April 23, the Jiangsu Provincial Price Bureau issued a penalty result for the Mercedes-Benz auto price monopoly case, and fined Mercedes-Benz Company with 350 million yuan, becoming the largest auto anti-monopoly ticket in China. Prior to this, BMW, Audi, Chrysler and other brands have also been "in the move", this kind of action indicates that the luxury brands with abnormally high prices, especially imported cars, have become the "target" of the current anti-monopoly.
Compared with the imported cars sold in the current authorized dealer system, due to the lack of “pumping” in some agents, and also avoiding the construction of some sales places, labor costs, publicity costs, etc., parallel imported cars are 10% lower than the former. The price of -15% gives it a foothold in the highly competitive imported car market. With the gradual legalization and standardization of parallel imported vehicles, it will undoubtedly have an increasingly obvious impact on the authorized import vehicle channels currently controlled by the general agent.
However, can it break the current price monopoly of imported cars as expected? Even as mentioned in the individual opinion, the mission of “remodeling the imported car market structure”? Parallel import cars that are advancing on the road can be said to have a long way to go, and even have an unbearable weight.
Just as parallel importers are full of hopes for the future, a recent sputum about "25ml" has become a cold water poured over their heads.
A few days ago, BMW's 2015 BMW X5 and X6 3.0L models sold in the US market increased the engine displacement by 25ml, reaching 3004ml. At the same time, the 2015 BMW 3.0L models sold in China, Europe, and the Middle East are still 2979ml.
As China's imported cars are taxed according to displacement, the greater the displacement, the higher the tariff. According to this calculation, if the BMW X5 with an authorized distribution of 2979ml will be subject to a tariff of 66.19%, the US model with a displacement of 3004ml will impose a tariff of 95%, which will increase the tariff cost by about 110,000. . This also leads to the fact that the price advantage of the 2015 BMW X5 and X6, which are currently parallel to the imported car dealers, is lower than that of the domestic authorized dealers.
Parallel Imported Cars Against the Current According to the "China's Imported Auto Market Report for the First Quarter of 2015", the cumulative number of imported cars from January to March 2015 was 258,000, a year-on-year decrease of 17.1%. In this regard, there is a view that the impact of parallel imported cars is an important reason for the decline in the imported car market.
"The short-term small outbreak of parallel imported auto market has driven the growth of the number of imported cars," said Wang Cun, senior manager of SINOMACH's marketing department, but did not significantly divert the sales of imported cars.
“In the first quarter, automobile imports fell by nearly 20%. The main reason is that the current inventory of dealers is too high.” Luo Lei told the Southern Reporter that the imported car market has also appeared since last year due to the slowdown in overall economic growth. The momentum of cooling down. According to the data of China Automobile Dealers Association, the inventory coefficient of imported cars in February this year was as high as 4.79, and the inventory coefficient of the imported car market was once again refreshed. As a result, the most pressing job for dealers today is to digest inventories and control new inventory growth.
However, what is awkward is that while the overall number of imported cars has declined, parallel imported cars have grown significantly under multiple benefits. According to the analysis of the China Association of Imported Automobile Market Information, in the first two months of this year, the share of parallel imported cars in the imported car market has reached 7.5%. This trade-off, the rapid rise in the volume of parallel imported cars began to attract the attention of multinational companies.
Whose cheese is moving?
"The price of the BMW X5 in the Middle East is now 737,000 yuan." Nandu reporter learned from a parallel importer's car dealership. At the same time, the price of the new BMW X5xDrive35i leading-type concession in BMW authorized 4S shop is about 800,000 yuan. Take this model as an example, the preferential range of parallel imported cars is between 60,000 yuan and 80,000 yuan, which is about 10% cheaper than the price of 4S stores. “The price difference is more representative.” A parallel importer in Guangzhou Tianhe North told Nandu that parallel import prices are generally 10%-15% lower than authorized brand dealers. This is also the majority of consumers. Choose the reason for buying a parallel imported car.
Some people are happy that there are people who worry about it. For authorized dealers of the brand, the parallel imported cars that are gradually becoming climatic are floods and beasts, which have a huge impact on the current price system. The general manager of a luxury brand 4S shop in Haizhu District of Guangzhou told Nandu that the most sensitive consumer is undoubtedly the price. Under the same conditions, parallel imported cars are more attractive than imported cars with authorized channels. More helpless, because of the need to bear the cost of after-sales service, brand promotion and other costs, he admits that "the price of the car is unlikely to be parallel to parallel imported cars."
In fact, the impact of parallel imported cars on the price system of 4S stores is not the deepest pain point for licensees. "Parallel imported cars are still supplemented after all, it is difficult to become mainstream." Volvo Car South Director Yan Jianrong told the Southern Reporter that the models of parallel imported car dealers are often one-sided, mostly market-selling models. In this regard, manufacturers can reduce tariffs, logistics and other costs by adopting measures such as selling domestically produced models, so that products have more price advantages. "So parallel imported cars will have a big impact on the price system in the long run." .
“I am most worried that brands and authorized dealerships will be black-burned because of parallel imported cars.” Yan Jianrong admits that the profits of parallel imported car dealers mainly come from the sales link, so most of them do not provide after-sales service, and manufacturers are not binding on parallel imported car dealers. .
Once a problem occurs in the vehicle, it is difficult for parallel importers to find it, and often find an authorized dealer to handle it. However, due to settlement reasons, the service fees that Chinese authorized dealers obtain from the manufacturers do not include parallel imported cars that were originally sold in other countries, so there is no obligation to provide services such as warranty. He said, "In the event of a dispute, consumers will not be so clear, the most wronged is the authorized dealer of the brand."
Cui Dongshu, deputy secretary general of the National Passenger Car Market Information Association, said that in addition to the above risks, parallel import car dealers contributed little to the brand's after-sales service and brand promotion, and also increased the profitability of authorized dealers. He stressed that the competition among automobile brands is increasingly focusing on the system. Today, "brand manufacturers can hardly tolerate parallel imported cars that do not assume obligations but enjoy rights."
Strangling in the cradle?
According to statistics from the China Automobile Dealers Association, in 2012, the import volume of domestic parallel imported cars was 49,806, which surged to 83,879 in 2013, and reached 50,862 in the first half of last year. It is expected to increase by 32% year-on-year. Preventing the “bad management” of parallel imported cars from becoming bigger seems to have become the consensus of many multinational auto companies.
In addition to the BMW mentioned at the beginning, Mercedes-Benz and Land Rover intend to curb the parallel imported car business by prohibiting cross-regional sales. According to Reuters, Mercedes-Benz encourages dealers to check the potential buyers' addresses by using online resources such as Zilow to review buyers who buy exclusive models such as GL large SUVs and set obstacles to cash payments.
However, it is still unclear how the effect of this move is unclear. "The luxury car brand restricts the unauthorized export of vehicles from the source of supply is a deterrent effect." Zhu Kongyuan, secretary general of the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce, believes that American auto dealers franchise The law stipulates that the dealer can't intervene or cancel the franchise right without the violation of laws and regulations. Therefore, Mercedes-Benz and BMW punish the US dealers.
It is worth noting that the localization strategy adopted by Toyota, another car brand with a large parallel import volume, is the most obvious way to prevent parallel imported cars. In order to reduce the price gap between the model and the parallel imported models, the development of parallel imported cars will be suppressed. For example, the Prado 2.7L, which has the largest number of parallel imports of the Toyota brand, is priced at 369,800 yuan after the domestic production. The price gap between the models of the Middle East and the same version is greatly reduced. The price difference between the two models was 140,000. Yuan or so.
"In recent years, all multinational auto companies have accelerated the pace of introducing hot-selling imported cars into China." Zhang Zhiyong, an auto industry analyst, told the Southern Reporter that the practice of bottom-up bidding also determined that the parallel imported car market would be difficult to import with the license in the future. The car channel is courted.
Guide How do parallel imports of cars come ashore?
As the first pilot experimental zone for parallel imported cars in China, the parallel import of automobile sales in the Shanghai Free Trade Zone undoubtedly has important guiding significance. How exactly is a parallel imported car sold on the shore? As the first batch of parallel imported car sales pilot enterprises, Cao Xinning, general manager of Tianjin Yuanda United Automobile Trading Group Co., Ltd. introduced the process in detail.
Doubt 1: What is the process for applying for an automatic import license? How long does it take?
Cao Xinning: Only the importer is qualified as a importer. Since there is no authorization from the car manufacturer, the import license is not available. In the import process, you need to work with some 4S stores to obtain a license. After the vehicle leaves the factory, you can apply for an import license. We apply to the Shanghai Municipal Commission of Commerce, and they report to the Ministry of Commerce. From the declaration to the certificate, it will take two weeks.
Doubt 2: Before the parallel import car is on the road, do you want to make some modifications according to Chinese standards?
Cao Xinning: China has a special technical condition for the safe operation of motor vehicles on the road, that is, the national standard 7258. According to this standard, parallel importers will rectify the car before import declaration, so that it meets China's safety standards. And these modifications are approved by the commodity inspection.
Doubt 3: How do parallel imported cars obtain China's compulsory product certification (commonly known as 3C certification)?
Cao Xinning: In fact, imported cars have already completed mandatory product certification in advance. The specific operation method is that before importing this model, more than one thousand data of the car will be reported to the commodity inspection, and the sample car will be sent to the laboratory of the commodity inspection, which will test each data. And the identification, including the mandatory collision test prescribed by the state, after the completion of these tasks, the model received a 3C certificate.
Doubt 4: What procedures are required before and after parallel import cars arrive in Hong Kong?
Cao Xinning: After the car arrives in Hong Kong, it is customs declaration and inspection, and then it can be sold. The parallel import car dealers will prepare relevant documents in advance and submit them to the customs and commodity inspection for declaration to save the corresponding customs clearance time, and the process is not complicated. Generally, customs clearance can be completed in 2 weeks.
Doubt 5: When the consumer picks up the car, what documents and materials will he get?
Cao Xinning: Consumers will get all the documents needed for the card, such as customs orders, commodity inspection orders, consistency certificates, user invoices, etc.

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