Vehicle imports into China jumped by 50% to 165,000 units in July, according to data from the Chinese Customs Administration, after import tariffs were cut to 15% from 25% at the beginning of that month.
The tariff cuts have allowed brands such as Audi, Porsche and Lexus to cut prices on their imported vehicles. Lexus, which relies entirely on imports, enjoyed a 37% jump in sales to 15,200 units in July.
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The 15% tariff applies to all countries of origin except the US which is currently involved in a trade war with China. Import duties on US cars were hiked to 40% in July in retaliation to similar moves by the US.
US-made vehicles accounted for around 20% of last year's 1.22m imports and include SUVs made by BMW and Mercedes-Benz at their US plants as well as Tesla and Lincoln cars.
Some of these models are expected to be localised in China in the coming years, more so if the trade tensions between the two countries do not ease.
Cui Dongshu, secretary-general of the China Passenger Car Association, said the exceptionally strong import growth in July was in part a rebound from a 15% decline in June, as buyers waited for prices to fall.
But Cui still expects imports to grow strongly for the rest of the year. In the first seven months of the year, vehicle imports amounted to 661,000 units.
