Core Viewpoint - The recent adjustment of the luxury car tax in China has significantly impacted the high-end automobile market, with a new threshold set at 900,000 yuan (excluding VAT), affecting both traditional fuel vehicles and new energy vehicles [3][4][25]. Summary by Sections Tax Policy Changes - The luxury car tax threshold has been lowered from 1.3 million yuan to 900,000 yuan, which means that vehicles priced between 1.017 million and 1.469 million yuan will now incur an additional 10% tax [4][25]. - The new tax policy includes a broader range of vehicle types, explicitly incorporating new energy vehicles [4][5]. Market Reactions - The announcement led to a surge in consumer activity, with many rushing to dealerships to purchase vehicles before the new tax took effect [5][7]. - Dealers extended their hours and offered incentives to facilitate sales, with some models experiencing price increases due to the tax adjustment [8][10]. Impact on Luxury Brands - Brands such as Land Rover, Porsche, and Mercedes-Benz are particularly affected, as many of their models now fall under the new tax bracket [14][18]. - The luxury car market has shown structural differentiation, with traditional fuel vehicles facing intensified competition from new energy models [5][25]. Consumer Sentiment - Some consumers expressed frustration over the sudden tax increase, with a mix of reactions ranging from acceptance to reconsideration of purchases [11][12][22]. - The luxury car tax adjustment has prompted some buyers to contemplate canceling orders or seeking refunds on deposits [12][14]. Manufacturer Responses - Jaguar Land Rover and Mercedes-Benz announced full subsidies for the luxury tax for specific models purchased within a limited timeframe, aiming to mitigate consumer dissatisfaction [19][21]. - The response from manufacturers indicates a proactive approach to retain customer loyalty amidst the tax changes [19][22]. Market Dynamics - The adjustment is expected to reshape the competitive landscape of the luxury car market, with potential shifts in consumer preferences towards brands that can offer better pricing strategies [26][30]. - The rise of domestic luxury brands, such as the Yudo U8 and the Zun Jie S800, is seen as a positive outcome from the tax adjustment, providing more options for consumers [30][31].

Core Viewpoint - The recent adjustment of the luxury car tax in China has significantly impacted the high-end automobile market, with the threshold for tax applicability lowered from 1.3 million yuan to 900,000 yuan, affecting both traditional fuel vehicles and new energy vehicles [4][5][32]. Group 1: Tax Policy Changes - The new luxury car tax policy will take effect on July 20, lowering the retail price threshold for tax applicability from 1.3 million yuan to 900,000 yuan for various types of vehicles, including new energy cars [4][5]. - The effective price threshold for new cars, including tax, has decreased from 1.469 million yuan to 1.017 million yuan, meaning any new car priced between these amounts will incur an additional 10% luxury car tax [5][32]. Group 2: Market Reactions - The announcement of the new tax policy led to a surge in consumer activity, with many rushing to dealerships to purchase vehicles before the tax took effect, resulting in extended store hours and a rapid depletion of available stock [6][8]. - Luxury car brands such as Land Rover and Porsche have been particularly affected, with many of their models now falling under the new tax regulations, prompting a rush among consumers to secure vehicles before the tax increase [9][24]. Group 3: Brand-Specific Impacts - Brands like Porsche and Land Rover are expected to be the most impacted by the new tax policy, as many of their high-end models exceed the new price threshold [24][25]. - The luxury car market share is dominated by brands such as Mercedes-Benz, which holds 48% of the market share for vehicles priced above 1.017 million yuan, followed by Land Rover at 23% and Porsche at 18% [33]. Group 4: Consumer Sentiment - Some consumers expressed frustration over the sudden tax increase, with a notable number considering canceling their orders or seeking refunds on deposits due to the unexpected financial burden [12][13]. - Despite the discontent, some consumers have accepted the additional tax as a necessary contribution to government revenue, indicating a mixed sentiment towards the policy change [12][29]. Group 5: Future Market Dynamics - The adjustment of the luxury car tax is anticipated to reshape the competitive landscape of the luxury car market, potentially benefiting domestic brands as they gain more market opportunities due to the lowered tax threshold [41][42]. - The luxury car market is expected to see a shift in consumer preferences, with buyers possibly opting for high-end models from domestic brands that can strategically adjust pricing to avoid the luxury tax [36][40].