(Yicai Global) Dec. 19 -- Many automakers, including Mercedes-Benz and Tesla, are planning to cut prices after the Chinese government announced that it will call off tariff hikes on US-made automobiles and parts starting from next year.
The Customs Tariff Commission of the State Council decided to suspend the additional 25 percent import duty on US vehicles, it said in a statement on Dec. 14. Tariffs on imported vehicles from the US are reduced to 15 percent from 40 percent, which is the level before the trade dispute between China and the US began.
Mercedes-Benz has already cut retail prices of its Mercedes-Benz models, as well as those under its Mercedes-AMG brand such as GLE sport utility vehicle, GLE coupe SUV, and GLS SUV at least until the end of March next year, the Stuttgart-based carmaker announced yesterday.
The revised retail prices are equivalent to a 15 percent tariff scheme, according to Yicai Global's calculations. GLS SUV's suggested selling price drops to CNY956,800 (USD138,800) at the lowest, which marks the largest decrease of CNY135,000 in the entire class. US-based buyers may find GLS SUVs offered for between USD79,000 to USD100,000 (excluding taxes) in the States.
After a halt to new tariffs emerged, both Tesla China and BMW China Automobile Trading announced they will cut prices from 3 percent to 10 percent.
Editor: Emmi Laine