Parallel import of cars gaining momentum

China (Shanghai) Pilot Free Trade Zone's pilot program on parallel imports of cars, which allows dealers to purchase cars directly from abroad, has evoked good response and is likely to be extended to more areas, officials said on Monday.

The Ministry of Commerce gave the green light to 17 companies for parallel import of cars in February. Out of this, four have already signed vehicle trade contracts with consumers by the end of June. Till date, about 228 cars have got automatic import license approval under the parallel import scheme, according to the Shanghai Municipal Commission of Commerce.

Under parallel imports, cars are brought directly from overseas to bypass distributors and dealerships so that they can sell the same at discounts of 10 to 25 percent.