Shanghai TLC begins pilot has accepted the application of parallel imports

Posted on 2/9/2015 10:53:32 AM

4S shop only from a single car era channel will be history. Reporters from Municipal Development and Reform Commission has learned that Shanghai Shanghai TLC parallel import car trade center is scheduled for February 9 formal trial. This means that the long term in a gray area parallel import car, formalized in Shanghai will be the first free trade agreement.
According to the Shanghai Municipal Commission of Commerce issued a notice appearing online "in the business of car sales for over five years, the last three operating consecutive profitable results, car sales in the last fiscal year more 400 million yuan, registered in the trade area has a car dealership Evaluating a wholly owned subsidiary or holding company as a car dealer parallel import "and other conditions, companies can implement to perform parallel imports autopilot business. It is understood that the pilot TLC CMC received a total of more than 10 applications for the enterprise.
Actual "sales management approach brand cars", foreign auto companies must sell through domestic 4S shop, 4S shop purchase only car companies must use original parts when repairing. This led auto 4S sales pattern Store is facing multiple pressures: by a blockage of the flow of business in the way of other auto imports and sales of vehicles and, secondly, 4S shop for manufacturers cars to produce an "addiction" serious latter assume full control of the high cost of building a distribution network 4S. This is one of the most widely criticized an issue price of imported vehicles is the current market price is much higher than abroad.
Parallel imports to bypass the distributor, the distributor region, 4S shops and other sectors, traders can buy a car directly from the country of origin or in the overseas market, and imported into the Chinese market, the same price as the Shop 4S models 10-25% cheaper. In addition to the price advantage, after the foreign car market, sometimes because some automakers in strategic planning, national certification and other reasons not listed in China. But parallel imported cars in this sense has a natural advantage, the dealer after the freedom of acquisitions abroad, and then shipped to domestic sales, eliminating the need for a large part of the new car timeout. According to statistics from China Automobile Dealers Association show that in 2013, parallel imports in China is about 83,000 vehicles, which represents 8% of total domestic cars imported.
It is worth mentioning that, previously known as the "water car" car dealers parallel imports not often faced with the initiative to provide after-sales issues and insurance service. The Shanghai FTA in order to end this phenomenon, parallel to the standard set by basically the same Jinkoucheshang Jinkoucheshang.
However, some car dealers are, these provisions did increase the risk of banking business the cost of business operations will increase. Because of this, many dealers Group is applying for a car driver parallel importation margin psychological widespread.

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