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].

Core Points - The new luxury car consumption tax regulation, effective from July 20, 2023, lowers the threshold from 1.3 million yuan to 900,000 yuan, impacting vehicles priced between 1.017 million and 1.469 million yuan [2][4] - Major luxury car brands like Porsche, Mercedes-Benz, and Jaguar Land Rover are responding quickly to mitigate the impact of the new tax on consumers [5][6] - The luxury car market in China is experiencing a decline, with significant drops in sales for high-end vehicles, prompting manufacturers to offer tax relief and promotional incentives [4][6] Group 1: Tax Regulation Changes - The new luxury car tax regulation reduces the starting point by 400,000 yuan, now set at 900,000 yuan for various types of passenger cars and light commercial vehicles [2] - The affected price range for new cars is between 1.017 million and 1.469 million yuan, with brands like Porsche and Jaguar Land Rover being significantly impacted [2][3] Group 2: Manufacturer Responses - Jaguar Land Rover announced it will cover the additional tax for specific models until July 31, 2025, to ease the financial burden on consumers [4][5] - Mercedes-Benz is also offering tax relief for certain models, ensuring that the tax changes do not affect the retail price for consumers [5] - Other brands like Maserati and Porsche are currently evaluating the new tax implications and have not yet announced specific measures [6] Group 3: Market Trends - The luxury car market is shrinking, with sales of vehicles priced above 900,000 yuan dropping significantly, particularly in the fuel and plug-in hybrid segments [4] - Promotional activities have increased, with discounts on luxury vehicles reaching up to 30%, indicating a shift in market dynamics [3]