Core Viewpoint - The new luxury car consumption tax policy, effective from July 20, reduces the tax threshold from 1.3 million yuan to 900,000 yuan, expanding the range of luxury vehicles subject to taxation, impacting brands like Mercedes-Benz, BMW, and Porsche, as well as some domestic electric luxury cars like the Yangwang U8 [1][2]. Group 1: Tax Policy Changes - The new tax policy includes a 10% consumption tax on luxury cars priced between 900,000 yuan and 1.3 million yuan, which previously were exempt from this tax [2]. - Vehicles with a retail price of 1,017,000 yuan or more (including a 13% VAT) will now incur additional taxes, resulting in a tax burden of 90,000 to 130,000 yuan for affected models [2]. Group 2: Market Response - Following the announcement, there has been a noticeable increase in foot traffic at luxury car dealerships, with many models like the BMW 7 Series and X7 selling out quickly [3]. - Brands such as Tesla have responded by lowering the starting price of the Model X to 899,000 yuan to avoid the tax threshold, while others like Jaguar Land Rover and Mercedes-Benz have introduced temporary subsidies to cover the new tax costs for consumers [4][5]. Group 3: Industry Insights - Industry experts support the tax adjustment, stating it reflects market changes and ensures tax stability without significantly increasing the tax base [3][5]. - The luxury car segment represents only about 0.1% of the overall car market, indicating that the tax changes will have minimal impact on average consumers [5].