TU-TESL

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Parallel cars were once highly sought after in the Chinese market for their "personality" and "high-end" features, but now their sales volume is fluctuating. Data shows that in 2019, the parallel import vehicle market fell sharply for two consecutive months in July and August, with a decline rate of more than 60%, while the sharp rise in September was more than 100%. According to the analysis of experts, the implementation of the Sixth National Congress and the General Administration of customs are the main reasons for the fluctuation of import volume. Specifically, among the parallel import vehicles, it is the brand with the largest share. From January to September 2019, the volume reached 44.2%, ranking second and third, and the cumulative share of the top six brands was 91%. Toyota and its share increased by 5.5 and 6.5 percentage points respectively, and decreased by 4.2 and 4.7 percentage points respectively year on year. The parallel import automobile market is still the main body, with 85% from January to September 2019; the share is 10%, 2 percentage points higher than that in 2018; the share of other models is relatively stable. From the start of the pilot in 2014 to 2017, the sales volume of parallel import vehicles has maintained a year-on-year growth. In 2018, influenced by China US trade relations, the adjustment of import vehicle tax rate and other factors, the import volume of parallel import vehicles decreased by 18.6%. In the first three quarters of this year, the growth trend returned. The import volume reached 128870, with a year-on-year growth of 7%, and the proportion in the total import volume also increased. However, the market recovery of parallel import vehicles is likely to be just a flash in the pan. According to the announcement on further standardizing the inspection of environmental protection items of imported motor vehicles issued by the General Administration of customs, since November 1, the appearance inspection and on-board diagnosis system inspection of environmental protection items of imported motor vehicles shall be carried out, and the exhaust pollution inspection shall be carried out at a ratio of not less than 1% of the imported quantity of the same model. In addition, relevant models of imported vehicle enterprises shall meet the requirements of environmental protection information disclosure for motor vehicles and non road mobile machinery. It is under the influence of this policy that parallel importers concentrated on customs declaration before November, which improved the import volume. In addition, from July 1 this year, 16 provinces and cities across the country began to officially switch from the national five-year emission standard to the national six-year emission standard, which triggered a large number of national five-year standard imported vehicles to register before the implementation of the new deal, and a wave of centralized Customs declaration appeared. At present, most of the parallel import vehicles only meet the national five standards. Except for a few parallel import vehicles of American version and Canadian version, which can upgrade OBD and install exhaust gas treatment devices by dealers, almost all other models with large displacement will stop selling in China. After the sixth meeting of parallel import model countries, it was decided that the Middle East model would stop customs declaration from November 1. Since July 1, 2020, after the implementation of the sixth national plan, parallel import vehicles that do not meet the emission standards will not be able to be licensed and sold in China. The prospective industry research institute has predicted that if the trade environment changes again in 2019, coupled with the implementation of the sixth national policy, the sales volume of China's imported automobile market may decline by more than 5%, and the parallel imported automobile market will also decline significantly.