Luxury tax hard to change luxury car market structure

The rumors of the luxury tax levy in the industry have recently led to people's ignorance of the prospects of the luxury car market. It is a bottoming-out rally or all the way to the bottom. Everything has to be handed to the market.

Compared with 40% in the same period of last year, the 8.34% increase in the first quarter of this year's Super-Hoc cars actually delivered a failing answer sheet. In recent days, the industry has imposed rumors of luxury tax on four occasions, which has made people unpredictable about the prospects of the luxury car market. It is a bottoming-out rally or all the way to the bottom. Everything needs to be delivered to the market.

Decline in market growth

After the sweet period with an annual compound annual growth rate of more than 40%, the ultra-luxury car market experienced a decline this year. In the first quarter of 2013, the growth rate of the Chinese luxury car market was only 8.34%, which is about 40% of that of the luxury car market in the first quarter of last year. The increase can be said to be the bottom line. At the same time, according to statistics from the Customs, the import volume of ultra-luxury vehicles fell 35.5% year-on-year in the first quarter of this year.

Although the luxury car market is slightly pessimistic in terms of form, but from the sales point of view, it is a few happy and happy. According to the latest sales data from the factory in China, sales of Rolls-Royce rose by 13% from January to April this year, Ferrari increased by 30% year-on-year, and Aston Martin increased by 8.5%. Since the launch of the new model Ghibli by the Shanghai Motor Show Maserati was well received by the market, the number of orders for this model during the show exceeded 400, and it is said that orders for this year's April, May and June have reached 1,500, which is exactly what it is The limelight.

Sales of Bentley and Lamborghini in China fell compared with the same period last year. According to industry sources, besides being influenced by policies and markets, the administrator of the company is also the reason for its short-term sluggishness. Bentley handed over Bentley China Volkswagen Management from DCH, and due to the year-on-year growth in handover management issues, Lamborghini faced management changes after being acquired by the public. “On the whole, the increase in the luxury car market is gradually slowing, which also shows that the market is becoming calmer,” the personage inside the industry said. “The levy of luxury tax on luxury cars has spread, but there are no implementation methods and implementation time. OK, so it looks like it's not too big now."

Limited impact on sales

During the interview, the reporter found that although most luxury car dealers are aware of the rumors of this "taxation order," most people do not respond to it strongly. Industry insider Han Longtao told reporters that the current sales of more than 1.7 million luxury cars in the front line are not the main force, so the impact is not as much as the rumors of the rumors. For car owners who can afford to buy a super luxury car, the luxury tax of 20% will not cause too much impact on it. “Overall, people in the sector feel that the impact of the luxury tax levy on luxury cars is not significant. If anything, it may also have an impact on some models, even if the policy is introduced to affect these models. Dealers can also easily minimize their impact by adjusting their quotas, said Han Longtao.

Bentley as a representative brand of domestic super luxury cars, enthraled the hearts of large numbers of fans, although the rumors of luxury tax levy directly refer to these luxury cars, but the real impact on it is minimal. "From a sales point of view, given the country's promotion of economy this year, the luxury car market as a whole has a slowing trend, but sales volume has not been affected much. Compared with last year, neither the number of visits nor the sales volume is too high. "The big difference." Yao Rugang, a sales consultant for Bentley Tianjin, said, "And our customers' attention in this area does not seem high. According to my understanding, only one of our customers once asked us about this. It can be shown from the side that policies have little impact on the luxury car market."

At the same time, Yao Rugang also believes that because the demand for luxury car market is not sensitive to price, the impact of taxation on luxury car sales is far less than that of the brand itself. “In my opinion, close to the government's strategy is important, but how to broaden market coverage and enhance brand effect is more important to meet the needs of senior business people. Maximizing the sense of brand identity is the ultimate way out of supercars.” Say.

The buyer is at ease

It is understood that about 60% of the people who currently purchase luxury cars complete the consumption through loans. Once the luxury consumption tax is implemented, more than 2 million vehicles will have to pay more than 400,000 yuan, and these taxes and fees must be paid upon purchase. Yes, the new car will be available after clearing, and this steep increase in costs has not yet been incorporated into the financial lending business. This will be a big blow to the business community that needs liquidity and car loans to buy cars.

In this regard, Mr. Duan who does the trade business told reporters that after the argument that the levy of the luxury tax on luxury cars was heard, the outside world was talking about whether it was not luxury cars that were buying crowds to wait or hold their shots. "The news that the 1.7 million luxury cars levied a 20% luxury tax will only create a watershed in the luxury car market," Mr. Duan said. "Some people who are able to buy through car loans will adjust their goals appropriately and choose other brands." Satisfy your desire to buy a luxury car, and someone with a very strong ability to buy a car will not care about this part of the tax."

At the same time, Mr. Duan also believes that if this policy is introduced in the future, some luxury car brands will usher in a “big exam.” He believes that the standard of 1.7 million will have a great impact on about 2 million luxury cars. Take the Mercedes-Benz S600 as an example. Although the car has numerous fans in China, it will add nearly 500,000 more than the original price after adding various taxes in the future. This part of the tax is equivalent to that of a midsize sedan. The price will greatly reduce the car's price/performance ratio. “I think that after the introduction of this policy, the impact on consumers will be more or less, but not too much. For low-end luxury car owners, there are also many options of the same type under 1.7 million for high-end luxury cars. For car owners, these taxes will not have too much impact on their car purchase."

Market adjustment comes

Due to the rapid growth of China's high-net-worth individuals (people with net assets of over 10 million yuan) and the low price elasticity of ultra-luxury vehicles, the growth potential of Chaohao's car market is still promising. Regarding the luxury goods consumption tax that the market is paying attention to, Zhang Bin, director of the Global Macroeconomic Research Office of the Academy of Social Sciences, believes that the price elasticity is not great for luxury goods such as ultra-luxury cars; the increase in taxes may cool the market in the short term, but long-term It does not appear to play a significant inhibitory effect.

At the same time, future taxation activities may bring an upsurge of sales to the market before the implementation of the policy. According to Kearney’s corporate consulting firm’s research, sales growth in China’s ultra-luxury automotive market has benefited from an increase in the number of high-net-worth individuals in China. From 2006 to 2011, the number of people in this section has tripled, reaching a total of 1 million in 2012. Among them, nearly 63,000 are ultra-high-net-worth individuals (net assets of over 100 million yuan), which is the most potential buyers of ultra-luxury cars. At the same time, starting in 2009, the purchase of ultra-luxury cars was included in the planning of the richest Chinese. It is expected that China will become the world's largest ultra-luxury car market in 2017.

At the same time, some people in the industry believe that with the current sales volume of luxury cars, luxury cars with a price above 1.7 million yuan will not exceed 5,000 units in one year in China, which will not affect the overall production and sales scale of the entire market, but the policy The implementation will affect the shift in consumer psychology in the entire luxury car market, making China's luxury car market into the adjustment period, production and sales scale, car prices will return to rationality.