
China
Chapter 1: Economic and business environment
Demographics | 1,403,500,000 (2016 est.) |
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Capital | Bejing |
Major cities | Chongqing, Shangai, Guangzhou, Wuhan, Tianjin, Shenzhen, Shenyang |
Languages | Chinese (zh-CN) |
GDP | $10,099 (2019 est.) |
Unemployment rate | 3.8% in 2018 |
Main industries | GDP Composition by Sector: Industries: world leader in gross value of industrial output; mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites |
Currency | CNY Chinese yuan renminbi (RMB) |
Interest rate | 4.35% in 2018 |
Inflation | 3.8% in 2018 |
Chapter 2 : Automotive market, segments & sales
Total Car park | Of the 310 million vehicles in China, 217 million are cars. This includes about 1.53 million new energy vehicles (NEVs). More than 170 million cars are in private ownership. (2017 China Parking Industry Development White Paper) |
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New vehicle registrations (Cars, LCV, Trucks) | 28,808,600 in 2018 (-2.8% vs 2017) |
Top 5 brands (total market) | Shanghai Auto |
Model preference top 5 (total market) | 1. Wuling - Wuling Hongguang (2018 Annual Sales Ranking) |
Used car market/renewal cycle | Used car transactions, which have been steadily growing in China, have been stagnating since the second half of 2018. According to the China Automotive Distribution Association (CADA), the number of used car transactions in China grew 19.33% in 2017 but slowed to 11.46% in 2018. Number of transactions: 13 million units Market size: 1 trillion yuan (approximately 16 trillion yen); the market size will be about three times that of five years ago. |
Chapter 4: Taxation & legislation
4.1 Car Taxation
Cars are submitted to a vehicle purchase tax and a Vehicle and Vessel Use tax
– Purchasing: VPT (Category), Central government (Tax Distribution), Consumers (Tax Payer) 10%** of vehicle price
– Retaining: VVT (Category) Local government (Tax Distribution) Consumers (Tax Payer) Charged by local governments, varied by engine displacement.
– Using: CT (Category), Central Goverment (Tax Distribution), Consummers (Tax Payer), Circulation tax, with $0.25/L on gasoline and $0.2/L on diesel
4.2 Income tax – Taxable persons
There is no concept regarding the deduction of car related expenses.
4.3 Company car
No specific regulation regarding company cars, but it is accepted that reasonable expenses related to the generation of income can be deducted from income and decrease CIT.
4.4 Income taxes – drivers’ personal taxation
No regulation available
4.5 Electric vehicles
4.6 Future developments
4.7 Legal background (import taxes)
Different taxations apply on imported vehicles : custom duty, import VAT and import consumption taxfuel
Chapter 5: Car policies
5.1 Company Car Entitlement
Company cars are unusual in China & less than 0.1% of all the employees have a car or an allowance.
5.2 Which sectors provide most cars?
The automotive and leasing sector is most likely to give a company car, as it's also considered to be a promotional tool for the products and services. Sectors that are most likely in other countries to give cars (pharmaceutical, medical) don't provide for cars to their employees.
5.3 Which job functions include a company car?
Only top executive functions will have a company car in the benefit package. These cars come with chauffeurs
5.4 Which Reference car is given to
- Junior/entry sales level?
No car
- Senior Sales / Management Level?
No car
- Executive Level
European cars (Mercedes E/S; BMW 5 Series/7 Series; Audi A6/A8)