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On January 7th, the Shanghai Municipal Commission of Commerce and the Shanghai Free Trade Zone Management Committee jointly issued a notice to launch a parallel import vehicle pilot, and officially launched a parallel import vehicle pilot in the Shanghai Free Trade Zone.
If the importer is allowed to import the entire car or auto parts directly from the origin of the product, the import channels are “parallel†to the domestic authorized distribution channels. Products imported through this method are cheaper due to the elimination of intermediate links.
In the past, China did not allow parallel imports of automobiles. It was not because of concerns about the protection of intellectual property rights, because the import of automobiles was not exactly the same as the import of other goods, and intellectual property protection could be achieved regardless of the import of finished vehicles and the import of parts and components. The key issue is that after the parallel import of automobiles, there will be a series of problems such as dealer management, after-sales service guarantee, consumer rights protection, parts supply guarantee and comprehensive service management. As a matter of fact, as long as you grasp the authorized general agent and brand store, you can do it.
For this reason, the prices of some imported cars in China are much higher than those in the international market. To a large extent, they use the regulations that China does not allow parallel imports of automobiles, and hardly increase the authorized Chinese agents and imported cars of the brand 4S auto repair shop. And the price of the parts and components is actually a vertical monopoly. According to this, China has conducted anti-monopoly investigations on many imported cars in the previous period.
In fact, China's auto market is highly competitive in both the high-end and mid- to low-end auto markets. No auto brand can occupy a monopoly position in today's Chinese auto market. Any brand's pricing strategy will lose its original market if it fails. Of course, the premise is to break the single mode of after-sales service of imported cars, such as sales links, after-sales maintenance, maintenance links, and uniform supply of spare parts.
By the same token, if the single mode of after-sales service of imported cars cannot be broken, parallel imports cannot achieve the intended purpose. It is said that the parallel import of cars can reduce the price by 20%, but in the absence of after-sales service, it is unlikely that the price will be reduced by 20%, that is, the parallel import of the car itself is of little significance.
At present, the Shanghai Free Trade Zone officially launched the pilot notice for the parallel import of automobiles. In fact, it is also the implementation rules of the State Council on the parallel importation of automobiles. It stipulates that enterprises that can apply for the parallel import vehicle pilot business must meet the following conditions: It has maintenance, service and parts supply outlets and facilities that are suitable for the scale of operation. For enterprises that cannot meet the requirements of this article, they can provide corresponding services according to the third-party public service platform in the Pilot Free Trade Zone, and can participate in the pilot after meeting the requirements; Reputable, with procurement channels and automotive sales service industry experience, and so on.
This has broken the single mode of the after-sales service of imported cars in one fell swoop, and actually solved the vertical monopoly of imported cars. By parallel importation, the price of imported cars has become a reality.
However, according to the Shanghai Free Trade Zone pilot vehicle parallel import notification regulations, there are not many companies that can meet those standards. Of course, the "Notice" proposes that the free trade zone can have "a third-party public service platform to provide corresponding services." In my opinion, it is not necessary for the government to establish a third-party public service platform. Since the price of the same brand auto parts in foreign markets is much lower than that of the Chinese market, there will be people who specialize in auto parts business, buy low-priced foreign brands from the same brand, open their own car maintenance and repair companies, or resell them to other Auto repair shop. As long as the government liberalizes market restrictions and strengthens market management, the after-sales service market for imported cars can also be solved by the market.