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Due to the repeated adjustments of tariffs, value-added tax and other taxes and fees, the price of luxury cars in China has been reduced many times, and the price threshold has been lowered. As the market gradually opens up, there is still room for car prices to fall.

Recently, major brands will usher in a small wave of price cuts, after continuing to Mercedes-Benz and BMW, Volvo and Land Rover brands also announced to join the price reduction array. In response to the country's policy of lowering the manufacturing value-added tax rate that will be implemented on April 1, Volvo Automobile sales (Shanghai) Co., Ltd. announced that it will reduce the recommended retail prices of some models on sale from now on.

Among them, the maximum price reduction of XC60 models is 24000 yuan, and the maximum reduction of XC90 is 60, 000 yuan.

Jaguar Land Rover China also announced price cuts, with its models falling as much as 85000 yuan for range Rover and 42000 yuan for Jaguar-branded models. The decline in entry-level prices for Jaguar Land Rover is shown in the following table:

The Lincoln brand has also lowered the recommended retail price of all model manufacturers on sale, and the adjusted recommended retail price will take effect immediately. Specifically, the Lincoln navigator dropped 20, 000 yuan in all models; the new Lincoln MKC dropped up to 19000 yuan; the new Lincoln navigator all dropped 10, 000 yuan; the Lincoln MKZ dropped 12000 yuan; and the Lincoln mainland dropped 16000 yuan.

In addition, Mercedes-Benz and smart brands announced price cuts, with Mercedes-Benz models falling by as much as 40000 yuan and smart models by as much as 7000 yuan. BMW brands also cut prices.

The main reason for the price reduction is that from April 1 this year, China's value-added tax rate reduction policy will be formally implemented, the current 16% tax rate for manufacturing and other industries will be reduced to 13%, and the current 10% tax rate for transportation, construction and other industries will be reduced to 9%.

Although the price reduction is small, let alone the desire to attract people to buy, but from several price adjustments, there is still considerable room for price reduction of luxury cars in the future. Within a year, the VAT rate has been cut twice, coupled with the reduction of tariffs from 25% to 10%, overall selling prices have fallen considerably.

Some dealers said that with the adjustment of the VAT rate, the terminal prices of some models may be affected accordingly, and the discount range may be reduced for some models that previously enjoyed terminal price concessions, while for some models that did not have a discount before, this adjustment can still bring certain benefits to consumers.

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