Parallel import auto industry recovers steadily

Editor's note

In the intensive introduction of a new round of policies to promote automobile consumption, parallel imported automobiles also ushered in the industry's good.As an important part of the automobile import trade, parallel imported automobiles are favored by many consumers due to their relatively richer configurations and more affordable prices.The further improvement of the policy has stimulated the purchase demand for parallel imported cars, and will also drive the development of the automotive aftermarket such as high-end refits. While meeting the diverse needs of consumers, it will open up more space for the automotive consumption market.

According to data released by the Tianjin Parallel Import Automobile Circulation Association, in May this year, the country imported 4,441 parallel imported automobiles (recorded caliber), an increase of 12.7% from April.As an important part of the automobile import trade, it has been more than a year since the business of parallel imported automobiles has been restarted after the "patches" of the environmental protection policy.Industry insiders said that although the scale of the industry has been greatly reduced, with the smooth import process and the recovery of the automobile industry, the parallel imported automobile industry is expected to recover steadily.

The channel restarts and the industry picks up

In the Tianjin Binhai International Automobile City in the Tianjin Port Free Trade Zone, hundreds of parallel-imported cars of different brands are on display and sold, and consumers from all over the world are in an endless stream.

Parallel imported vehicles refer to vehicles that are purchased by traders from overseas markets without the authorization of brand manufacturers and introduced into the Chinese market for sale.As a supplement to imported cars from the main channel, parallel imported cars are gradually recognized by more and more consumers because they can meet the diverse and individual needs of different consumer groups, and their prices are more favorable than 4S stores.

The person in charge of sales introduced to the reporter of the Economic Information Daily that there are currently more than 100 models on sale in the entire Auto City, nearly half of which are newly imported this year, all of which meet the "National VI" emission standards, and can be licensed across the country. Compared with last year, there is a significant decline, and the decline in a single vehicle ranges from 10% to 20%.

According to the person in charge, at present, parallel imported cars mainly come from North America, Europe and other places. They arrive at Tianjin Port by sea. After arriving at the port, they can be delivered to customers in about a week. The time required is significantly shorter than before. , and this is due to the improvement of customs clearance and testing efficiency at Tianjin Port.

In the Tianjin Port Free Trade Zone, there are three testing institutions that can provide rapid testing services for parallel-imported vehicles. Enterprises apply for certification and testing by testing institutions will be carried out simultaneously. Vehicles that pass the testing will be officially imported and enter the domestic circulation link.

At the beginning of 2015, with the opening of the pilot gate of parallel imported vehicles in the Shanghai Free Trade Zone, the parallel imported vehicles that were in the gray area before achieved sunshine sales.In recent years, parallel imported cars have become popular due to the advantages of many models and low prices, and the industry has accelerated its development.Data from China's imported car market database shows that there were 163,200 parallel imported cars in 2019, accounting for 15% of the total imported cars.

However, with the introduction of the "National VI" emission standards for automobiles, the import of "National V" light vehicles will be banned from July 1, 2020, and sales will be stopped from January 1, 2021.As soon as the new regulations came out, the door to parallel imported cars was temporarily closed.Tianjin, as the main port of entry for parallel imported cars, suffered serious losses.Zhang Tingting, secretary general of the Tianjin Parallel Import Automobile Circulation Association, said that due to the inability to complete customs clearance, the number of vehicles stranded in Tianjin Port once reached more than 10,000.

"Not all parallel-imported vehicles fail to meet the 'National VI' emission standards, but due to the unauthorized nature of the parallel-imported automotive industry, it is unable to provide information that only car manufacturers can provide, and cannot be verified by emission standards, so they cannot After getting the 'environmental information on-board vehicle list', it cannot be sold." Zhang Tingting said that after a long period of hard work and exploration, the industry finally resumed imports in May 2021 with the help of various national and local departments.

For more than a year, the import process of parallel imported vehicles has been gradually standardized and smooth, and the import volume and sales have recovered steadily.The data shows that in May 2022, 4,441 parallel-imported vehicles were imported across the country (recording number); the terminal retail sales volume was 2,444.Since the import of parallel imported vehicles resumed, the monthly terminal sales have remained above 1,000 for 9 consecutive months.

Downsizing caused by multiple factors

The reporter of "Economic Information Daily" visited and found that although the parallel import business of automobiles has resumed normal development, the scale of the industry has not been as large as before.Statistics show that in 2021, the cumulative import of parallel-imported vehicles (numbered caliber) will be 29,400 units, a year-on-year decrease of 49%; in the first five months of 2022, the cumulative import of parallel-imported vehicles (numbered caliber) will be 18,300 units. The annual import volume has rebounded to a certain extent compared with 2021, but there is still a big gap compared with before 2020.Industry insiders believe that various factors have led to the reduction of the industry scale.

First of all, some models cannot be imported because they do not meet environmental protection standards.Zhang Tingting said that since the "National VI" environmental protection emission standard is the most stringent emission standard in the world, the vehicles in the Middle East, which accounted for more than half of the original parallel car market, were basically unable to be imported, resulting in a sharp drop in import volume.Chen Fenghua, general manager of Ronglin Parallel Automobile Import and Export (Tianjin) Co., Ltd., who has been in the industry for 16 years, said that before, he could sell 80 units a month, but now he can only sell a dozen units a month. The original development model was unsustainable. Make a living with other businesses such as refitting cars.

Second, the long-term protracted issue of the "National VI" emission standards has led to a sharp drop in the number of employees.From the second half of 2020 to May 2021, for nearly a year, the import of parallel imported automobiles has stagnated, causing a huge impact on the industry."In the past year or so, many companies and dealers have changed their careers due to high operating pressure. With the impact of the epidemic, a large number of employees have been forced to leave, and even some large auto cities have closed or transferred. At the same time, the import plans of existing companies are limited, and import Reduce or suspend imports, and only focus on digesting inventory." Zhang Tingting said.

Third, overseasautomobile production hasdeclined, and costs have been inverted.A number of industry insiders said that due to the international epidemic and the shortage of chips, the production of the global luxury car market has been greatly reduced, and the procurement of car sources has been difficult and prices have risen sharply.At the same time, domestic car sales continued to be sluggish, especially the luxury car market was greatly affected by the epidemic, and the sales price was even lower than the import cost, aggravating the operating pressure of enterprises.

The market is expected to stabilize and rebound

Since the beginning of this year, parallel imported vehicles have once again been affirmed and supported by the state.The "Notice of the State Council on Printing and Distributing a Package of Policies and Measures to Stabilize the Economy" issued in May proposed to "support the parallel import business in the import ports of automobiles and improve the environmental protection information disclosure system of parallel imported automobiles".

Zhang Tingting said that as policies become more transparent, more and more enterprises and personnel have adapted to the development status of the parallel imported automobile industry.That is, on the basis of conforming to the "National VI" standard, the vehicle source is searched, and the vehicle is imported after completing the inspection according to the regulations."Although some companies choose to leave one after another, a group of companies from Tianjin, Guangdong and Shandong have joined the association recently and are optimistic about the development prospects of the industry."

A reporter from the "Economic Information Daily" learned that now, in addition to Tianjin Port, the traditional import distribution center for parallel imported automobiles, the other two areas of the Tianjin Pilot Free Trade Zone have also begun to develop parallel imported automobile related businesses and provide high-quality hardware facilities and professional supporting services. , to promote the development of the industry.

Some parallel-imported car dealers said that due to unfavorable factors such as the epidemic, the price of some parallel-imported cars is currently higher than that of medium-sized cars, but there are still some consumers who are not very price-sensitive. Choosing to buy is one of the meanings of the existence of parallel imported cars.

Zhang Tingting said that the parallel imported automobile industry has strong vitality and high trade freedom. With the stabilization of domestic and foreign epidemic prevention and control, the reduction of shipping costs and the recovery of the automobile industry, the comprehensive cost of parallel imported automobiles is expected to gradually decline.Moreover, after one year's exploration and study of industry regulatory requirements and changes in market demand in the "National VI" era, it is believed that the parallel import automobile industry will continue to pick up in the second half of the year and reproduce the prosperity of the past.