Shanghai Free Trade Area Encourages Auto Finance leases Development

Shanghai Free Trade Area is attracting more and more auto companies.

As it known recently, BMW, Benz, Audi, GM and Porsche have mind to build their product display and sales area in Shanghai Free Trade Area after SAIC Automobile Group Co. Ltd. has built its trade company. Jaguar Land Rover, Lexus, Cadillac and Rolls-Royce are thinking about dealership found in Free Trade Area.

Dongshu CUI, vice secretary-general of National Passenger Car Association to media that for the joint venture brand which wants to increase their export business, it is required “China and foreign countries sign relevant contract to reduce export customs”, it those company think about stimulating their business by tax reduce.

Multinational auto companies are not only interested into favorable logistics and warehouse, but also think about finance lease business. According to published by State Council, finance lease business of Free Trade Area registered companies will be included into tax refund policy range, which will stimulate finance lease business development.

“One purpose of Shanghai Free Trade Area built is stimulating auto products export.” Dongshu CUI stresses, “But with limitations. It asks China and foreign countries sign contract to benefit both export and import business.”

It is still unsure about export stimulation function of Free Trade Area, but SAIC Group has entered the area already. At present, SAIC Group PR staff told media that SAIC Group will build its auto and accessories export and import company, but can disclose more details. SAIC wants to open Middle Asia and South America market based on Shanghai Free Trade Area policy.

“At present, some import auto brand is arranging about new shop building in Free Trade Area, but it is individual action based on local demand.” BMW and GM relevant staff told reporter of .

For multinational auto company, the most positive side of entering Free Trade Area is logistics and finance service. According to introduction of vice secretary-general of China Automobile Dealers Association Lei LUO, “Function of Free Trade Area is similar with Bonded Area. All products entering Free Trade Area will enjoy zero customs. ” It means as long as stay inside free trade area, there is no custom required.

With the start of Free Trade Area on Oct. 1, auto finance lease business may develop fast. At present, Commercial Ministry publishes the 25 domestic companies of 11th finance leasing business testing list includes Ya Xia.

Inner people analysis that auto finance lease, as an important chain of finance diversification, will be activated in the Free Trade Area.