BEIJING – China’s Ministry of Commerce (MOFCOM) is evaluating a vehicle parallel import proposal applied by Shanghai Free Trade Zone (FTZ), according to a report in Southern Metropolis Daily.
Once the proposal is approved, the vehicles that are not imported from OEM authorized dealers will be legal in China.
According to an executive of Shanghai FTZ, the price of imported vehicles would be reduced by 15 percent, and that of luxury cars would be cut by 20-30 percent, if the proposal goes through.
Offering aftersales services is an important part of the proposal. According to the proposal, insurances offered by China Pacific Insurance (Group) Co. (CPIC) will be included in the price of the vehicles to be sold in the FTZ, accounting for about 10 percent of the selling price.
Shanghai FTZ will build showrooms, experience centers, sales outlets and maintenance centers for parallel imported vehicles, according to the Shanghai International Trade Center 2014-2015 Key Works Arrangement released by Shanghai municipal government at the end of August.
According to incomplete statistics, around 90,000 foreign-made vehicles entered the China market from Tianjin or Dalian port, without getting approvals from the carmakers and their authorized dealers in China in 2013.