[ET Net News Agency, 24 May 2018] China announced to reduce its tariff for imported
cars from 25% to 15%. Jefferies Research believes the impact on current car market is
minimal.
The research house said there is little financial incentive for global OEMs to give up
their high margin production in China but turn to low margin imports. 8% tariff cut may
translate to 5% retail price cut.
Jefferies does not expect aggressive price cuts from major luxury brands, which may put
pressure on their own lower end cars first before mass market brands. (KL)