"Only by reducing tariffs and increasing parallel imports can we really cut the prices of imported vehicles," according to Jia Xinguang, a senior auto industry analyst.

"The move would increase competition and influence the pricing of domestic autos, especially the middle and high-level classes, leading to price reductions, which is a good thing for consumers."

He said that, on the surface, cutting the price of imported vehicles has nothing to do with ordinary people as it is seen as a high-end consumption. "But the fact is that a tariff cut would eliminate the original protective measures and influence the price of domestic vehicles," he added.

The State Council's Customs Tariff Commission announced on Tuesday that a tariff reduction on complete vehicles and auto components will start on July 1.