Qianhai Pilot Program Allows Selling of Parallel Import Cars
Around ten parallel import vehicles are sold in Qianhai since the pilot program has introduced to allow vehicles within the zone. One car dealer in Qianhai has develop a business partnership with Mudelong Group in Asuzhou to sell parallel import vehicles. China first allowed selected auto dealers that are registered in the Shanghai Free Trade Zone to import and sell cars without the permission of foreign carmakers. This was done to weaken foreign carmakers control over their retail prices.
Suzhou company is one of the four companies that were given approval to sell parallel import cars. One of the biggest advantage is that prices can be 15 to 20 percent lower that those sold in 4S shops that are authorized by carmakers. Among the imported cars soles are those made by Mercedes Benz, BMW, Porsche and Range Rover that re usually priced between 700,000 to one million yuan are the most sought after.
Parallel imports cars are also known are the grey market, as with manly develop countries making them legal even with placing restrictions such as limiting sales of items to direct purchases by individuals. Foreign cars that imported using selected car dealers and through the Shanghai free trade zone can be sold directly to individuals. Dealers joining the program are responsible for the quality and after sales services of the vehicles that they sell.