Following Russia’s 9 months ago that it had raised the import tariffs on vehicles to 25% to protect local auto companies, the Russian government’s foreign trade protection measures committee recently decided to extend the deadline for the promotion of tariffs on foreign cars imported from foreign brands for another 9 months. . At the same time, the Iranian Trade Promotion Organization announced that Iran will ban the import of several Chinese-made cars. The Municipal Foreign Economic Commission stated that the introduction of this measure has a great potential for trade protection and is assisting Chongqing automobile export vehicle export companies to collect evidence in order to obtain the support of the Ministry of Commerce.
90% reduction in exports to Russia under high tariffs
"If the import tariff is raised to 25%, this is equivalent to losing the export market." Gu Hua, Director of the Electrical and Mechanical Industry Department of the Foreign Economic Relations Commission of Shanghai Municipality, said that after Russia imposed a high tariff on imported cars in December last year, Chongqing vehicle export enterprises exported The volume has dropped sharply. From January to August this year, Chongqing's auto vehicle exports to Russia were only US$1.9 million, a decrease of 95.4% from the same period last year.
As a large exporter in Chongqing, Yin Mingshan, chairman of Lifan Group, regrets that Russia has extended its high tariff policy on automobile imports. He said that Lifan Motors insists on the strategy of global factory layout, that Russian factories have been put into production, and that prolonging the high tariff policy is the same for Lifan. Russia's localized companies have little impact.
Lifan built a factory into a lucky place
“The Russian auto market has a very broad prospect. Lifan’s models are also very popular in Russia.†According to the person in charge of the Lifan Auto Import and Export Company, Lifan has opened a factory in Russia. For Russian consumers, Lifan is not an imported vehicle. Now. On the contrary, those companies that use spare parts and vehicles for export have almost no profit under such a high tariff policy and are gradually abandoning the Russian market. Lifan also provided an opportunity. In response, Lifan wants to take advantage of opportunities that have already been localized in Russia. In Russia, it has established a comprehensive distribution network and after-sales service system, and increased its production capacity in Russian factories. In 2013, Lifan will produce 50,000 vehicles and form 100 % of local purchases to occupy the market.
"Lifan is fortunate, but there are victims like Hongyan," said Chen Banglu, manager of international business at Hongyan Commercial Vehicles. Hongyan has performed well in the Russian market in 2008 and exported a total of 88 heavy trucks. The export amount exceeds 500. More than 10,000 US dollars, but since Russia began to impose high tariffs on vehicle imports, Hongyan has almost no business in Russia. Chen Banglu also said that Hongyan heavy truck is very suitable for the Russian market and will not easily give up. He called on the relevant departments of the Chinese government to actively engage in dialogue with Russia and try to resolve the tariff issue.
Firms collect evidence to challenge barriers,
“Chongqing enterprises should actively respond to barriers to overseas trade.†Gu Hua, director of the Electrical and Economics Industry Division of the Municipal Economic and Trade Commission, said that as early as last year when Russia introduced a high-tariff trade protection policy, the foreign-funded economic and trade commission actively advised Chongqing related companies to collect relevant information. The Foreign Economic Relations Commission requested the Ministry of Commerce to assist in negotiations. Now, the policy that originally expired in September of this year has to be extended by nine months. At the same time, Iran also reported news of importing Chinese cars. This made Chongqing enterprises that could have relaxed their breath again fall into desperation. "For this kind of trade protection policy, enterprises must not be allowed to let them die." Gu Hua stated that in order to defuse the crisis, SHFE has started to intervene. At present, it is helping companies collect relevant information to prove that Russia's trade protection behavior is established. It was reported to the Ministry of Commerce for assistance.
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