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The Australian government new free trade agreement with Japan is set to lower prices.
new free trade agreement with Japan will have an impact on prices in the new car market in the months the federal government.
Mazda Australia this week confirmed that it was considering a combination of lower prices and equipment added in its updated models from next year, in a move that is likely to trigger similar strategies of Japanese competitors .
Mazda Australia boss Martin Benders said the trade agreement, which would remove spent a 5 percent tariff on some existing passenger vehicles imported from Japan on customers instead of being absorbed.
We got improvements to CX-5 and Mazda6 start of the new year and will be priced and specced accordingly Benders said.
We will make adjustments and deal with the other variants Consequently, there will be a kind of combination of the adjustment of prices and specification changes.
While the new agreement has yet to be formally adopted, it is expected to come into effect either at the end of this year or early next year.
Mazda spokesman Steve Maciver of Australia said the savings pocketed by customers depend on the price of the car purchased.
If you take a mid-spec Mazda3, you're looking at about 800 a car, give or take he said.
The revisions mean that the Mazda3 standard could be equipped with front and rear parking sensors Sensors are an option 750 at present.
Collectively, about a third of the new fleet of Australian vehicles imported from Japan.
Japanese compatriots Toyota, Nissan and Mitsubishi all look to follow the example of Mazda, but aren t ready to confirm their movements.
A spokesman for Toyota Australia said the company still investigating how he would react to the free trade agreement.
It will take some time before announcing savings or additional accessories, or we may have to absorb the savings because of the pressure on existing price she said.
Because the agreement hasn t come into force but we are looking to our range and going from there.
A spokeswoman for Mitsubishi Australia said that we constantly review our products and try to increase the value, so I dare say that's a constant element which is under consideration.
Similarly, Nissan Australia says it is evaluating the impact of the free trade agreement on prices and specifications.
similar trade agreements already in place for imported vehicles in Thailand, the US and South Korea.
In the recent agreements, such as the Korean case, all automakers have reflected the economy as a whole, or they have chosen to add additional standard equipment for their vehicles to offset the savings.
Favorable, the benefits of Japanese FTA Aren t as generous as 1500 the value of saving the federal government originally planned in April estimate of the industry has been described as fanciful.
Benders offered Tariff reduction is 5 percent of the landed cost of a car, not 5 percent of the retail price Thus, in 1500 on the 20,000-odd car is not an accurate reflection.
For the automotive industry, currency fluctuations are usually bigger discounts on new vehicles that trade agreements, said Maciver.
Currency exchange is it explained something much Currency fluctuations can make a difference for us much more in the short term but we don t make immediate changes on the basis of money because you'd always up and down.
The federal government announced the conclusion of negotiations of the Free Trade longstanding agreement with Japan Prime Minister in April in Japan, Shinzo Abe, officially signed the contract this week during a visit to Australia last month .
In addition to consumer goods, the agreement will also benefit beef from Australia, dairy products, food exporters and resources.
Last year, vehicles from Japan totaled 360,058 or 31 8 percent of all new vehicle sales in Australia.
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