·The import tariff reduction of auto parts has limited impact

In response to the tariff reduction of auto parts, a number of listed companies responded through an interactive platform for investor relations. Dongpu shares said that the country's reduction of import tariffs on complete vehicles and parts has no impact on the company; Baolong Technology said that tariff reduction has no direct impact on the company, and the resolution of related matters is conducive to the company's business in North America; Wolong According to Electric, the decline in import tariffs has no significant impact on the company's performance; Precision Forging Technology said that at present, the company's products exceed 20% of exports, indicating that the company's products have strong competitiveness, and the relevant tax rate policy has little impact.

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

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

A car analyst at a medium-sized brokerage said that tariff cuts have little impact on domestic component manufacturers because most of the auto parts have been localized, and only a few key components rely on imports. Domestically produced auto parts are at the mid-end, and imported auto parts are mainly high-end, belonging to different categories of competition.

Huatai Securities said that according to the data of China Merchants Research Institute, the total import value of China's auto parts in 2017 was about 37 billion US dollars. It can be estimated that the imported parts and components account for about 9% of the average material cost of the whole vehicle, that is, the proportion of domestically produced parts and components. About 91%.

CICC believes that for most parts and components, the decline in tariff rates cannot compensate for the increase in freight and insurance costs, so it still does not have import economy. The OEM will try to require the parts and components enterprises to set up factories nearby. The use of imported parts will lengthen the supply cycle and there is a risk of affecting the production schedule.

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