Regarding the reduction of tariffs on auto parts, a number of listed companies responded through the investor relations interactive platform. Dongmu Co., Ltd. stated that the reduction of import tariffs on automobiles and parts by the state has no impact on the company; Baolong Technology said that the reduction of tariffs has no direct impact on the company, and the resolution of related matters is conducive to the development of the company's business in North America; Wolong Technology Co., Ltd. Electric said that the decline in imported automobile tariffs had no significant impact on the company's performance; Jing Forging Technology said that at this stage, more than 20% of the company's products are exported, indicating that the company's products are already highly competitive, and the relevant tax policy has little impact.


BOC International said that the tax rate will be reduced to 6% uniformly, and the import cost of most parts and components is expected to be reduced by 3.6%. In 2017, China's main imported auto parts include: gearbox and its parts, engine parts, automotive lighting and signaling devices, automotive electronics, etc.


The reporter learned from a number of listed companies involved in gearbox, engine parts and automotive electronics business that the impact of tariff reduction on business is not obvious.


An auto analyst at a medium-sized brokerage said the tariff cut has little impact on domestic auto parts manufacturers, because most auto parts have been localized, and only a few key parts are imported. The domestically produced auto parts are at the mid-end, while the imported auto parts are mainly high-end, which belong to the competition of different categories.


According to Huatai Securities, according to data from the China Business Industry Research Institute, my country's total imports of auto parts in 2017 totaled about 37 billion US dollars. It can be estimated that imported parts accounted for about 9% of the average material cost of a complete vehicle, that is, the proportion of domestic auto parts localization. about 91%.


CICC believes that for most parts and components, the reduction in tariff rates cannot compensate for the increase in freight and insurance costs, so it is still not economical to import. OEMs will try their best to require parts companies to set up factories nearby. The use of imported parts will lengthen the supply cycle, and there is a risk of affecting the production progress.