Porsche announces price cuts following import tariff reduction

Porsche China Motors Limited announced on Wednesday they will cut car prices following the country's decision to reduce import tariffs on vehicles.

Effective as of June 6, Porsche China said it will implement new manufacturer suggested retail prices for all models on China's mainland, aiming to offer more personalized options with optimized prices to enhance the experience for consumers. 

According to a statement provided by Porsche China, the price of a Porsche Macan has been cut by about 32,974 yuan (US$5,159) to 550,000 yuan, while the Porsche Cayenne is 71,470 yuan cheaper, with a new price of 918,000 yuan.

The suggested retail prices listed on Porsche's official website will be adjusted at a later date, the company announced.

The company also mentioned that according to relevant laws and regulations, the retail transaction prices of Porsche car models are subject to the determination of respective Porsche authorized dealerships. For details of retail transaction prices, consumers need to contact a Porsche authorized dealer.

On May 22, the Ministry of Finance said that China will cut import tariffs on vehicles to 15 percent from 25 percent starting from July 1. 

Carmakers including Tesla, Mercedes-Benz, BMW, Volvo, Lincoln and Lexus have already adjusted the prices of their imported vehicles on the China market.

China imported over 1.2 million vehicles last year, accounting for 4 percent of total car sales in the country, according to data from the China Automobile Dealers Association.

Bu Zhaohui, a market analyst from WAYS Consulting Co, said that reduced import tariffs on vehicles will benefit Chinese consumers, but the overall impact is limited. Sales of imported vehicles from premium brands will be increased.

Bu also noted that BMW, Mercedes-Benz and Lexus are companies with higher sales of imported vehicles, sales of which account for about 43 percent of China's total imported vehicle sales. The three firms are expected to benefit from the policy and may see increased sales.

Li Yanwei, an analyst at the China Automobile Dealers Association, said China's move to cut the tariff will lead to fiercer market competition, attract more consumers to visit their stores, as well as boost overall sales in the auto market.