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Ukraine car import tax to affect Chinese makers (2013-03-24 23:52:10)

Ukraine's new emergency tariffs on car imports which could have both positive and negative impacts on Chinese car manufacturers.

Sales of Chinese cars on the Ukrainian market may drop significantly in the short term as Ukraine’s tax would affect passenger cars with engine capacities of 1,000 to 2,200 cubic centimeters, a range into which most Chinese imports fall.

The move will affect the whole car series, which comes from China in import mode. First of all, it is cars made by Geely, Chery and almost all models of Great Wall.

Most likely the car distributors would not be able to avoid a rise in price, as the tax, take effect from April 13, would be raised by a substantial margin of 6.46 percent to 12.95 percent, he said, adding the increased prices would hurt demand.

However, it could be advantageous for Chinese manufacturers to establish factories in Ukraine.