International Car Shipping to China: Legalized Parallel Car Imports

China Legalizes the "Parallel Car Market"

By imposing new laws on dealerships and car manufacturers, the Chinese government appears to finally have a solution to absurdly high prices on imported cars. Starting in the Car Trade Market in Beijing’s Asian Games Village, laws are beginning to simplify the car imports to China while giving dealers greater freedom in selling their cars.

Read More About How Dealers Previously Imported Cars Into China via the Gray Market

Before the legalization of the parallel car market, Chinese dealers looking to legally import and sell cars have had to receive explicit permission from car manufacturers. Car makers would mandate what models the dealers could carry, and at what prices they would be allowed to sell them for. Dealerships not following the strict pricing guidelines were threatened with large fines.

Future Car Supermarkets

Dealers have also been previously only allowed to carry one type of car brand at each dealership. But with new laws, the government is effectively allowing dealers to sell numerous brands under one roof. These so called “car supermarkets” are resulting in greater competition between dealerships, which result in a better prices for the consumers. Some experts are seeing this as the future of dealerships in China. Due to this demand we expect to see an influx of dealers interested in shipping cars to China in the future.

This decision by the Chinese government to legalize the "parallel car market" is a game-changer. The new laws have not only simplified the process of importing and selling cars, but they have also allowed for multi-brand dealerships to emerge. This means that consumers will have access to a wider range of cars and can now compare prices across different brands. As a result, prices on imported cars have already dropped by more than 20%, making it more affordable for the general public. Although this new program is only affecting the Shanghai Free Trade Zone, the government is open to the idea of expanding it to other areas of China, which will make imported cars more accessible to everyone. It's exciting to see how this will shape the future of car dealerships in China.