Chapter 502: If you prepare, you will be established, and if you don't prepare, you will be wasted.

There is a saying in "The Book of Rites: The Mean": everything is foreseen, and everything is foreseen, and if it is not prepared, it will be wasted. Pen | fun | pavilion www. biquge。 info pre-word rule is not to stumble, pre-rule is not sleepy. There is no guilt before the trip, and there is no poverty before the road.

What does this mean?

To use Taizu's "On Protracted War", it is "not to fight an unprepared war"!

The layout of the African market is not something that Li Fanyu thought of as soon as his head was hot after seeing Hongguang. Rather, the decision was made after careful consideration and a fairly rigorous investigation by the group's marketing department.

In this decision, Li Fanyu divided the layout of the African part into two steps.

The first step is Egypt's domestic market,

Egypt is a country with a long history that is not inferior to China, with a land area of one million square kilometers and more than 80 million citizens. However, compared with China, it is simply not a place for people to stay, and the country is dry and has a dry climate with little rainfall. With the exception of the Nile Delta and the northern coastal region, which have a subtropical Mediterranean climate, most of the country has a tropical desert climate.

However, despite the poor natural conditions, Egypt's domestic policies for the industrial industry and the automobile industry are quite relaxed, and this magical country has no mandatory emission standards, no mandatory scrapping standards, and even the car failure recall system is particularly inadequate.

Since there is no independent automobile industry in China, the lax standards for automobile certification are simply the same!

Foreign cars entering Egypt only need a test report before loading and a document certified by the embassy, and that's it!

Why is it so loose?

Because of the civil strife...... All kinds of political regimes are competing for the right and left, and you are singing and I will appear on the stage, who has the heart to care about the entrance and exit of your car?

Although it is a little better now, since 2011, the turmoil in the domestic situation has had a serious impact on the national economy. Therefore, even if it has been relatively stopped now, in order to restore production, increase revenue and reduce expenditure, the policy on automobile imports is still very relaxed.

In order to get rid of the inflation rate of nearly 10% per year since 2011, the Egyptian government is now seeking international assistance to attract foreign assets to invest in its country to improve people's livelihood.

After five or six years of tossing, Egypt's poverty line ratio has reached 25 percent, that is, a quarter of the people here do not have enough to eat......

But in today's world, no matter how poor your country is, the four aspects of clothing, food, housing and transportation are rigid needs. Specifically, what has to do with Li Fanyu is that no matter how poor he is, the people of Egypt must have a car to drive!

Therefore, in order to solve the problem that the people do not have a car, the Egyptian government has formulated a set of tax policies that car companies all over the world are eager for; CKD10%!CBU1.6L below 45%, between 1.6L-2.0L 100%, greater than 2.0L is only 135%!

CKD stands for auto parts and assembly tax rate, and CBU stands for vehicle tax rate!

In addition to this, there is a 15% consumption tax, which is nothing for car dealers.

That's right...... Compared with the time and space before Li Fanyu, China's tax model of dutiable price plus tariff, consumption tax and value-added tax is simply very conscientious......

The country's regulatory authority for the automotive industry is also extremely inadequate, with only one "Egyptian Organization for Standardization and Quality" known as EOS.

However, please note that there are no specific requirements for market access for automotive products in Egypt's existing legal system. or what other procedures and technical standards, as well as laws and regulations.

That is, there is almost no regulation!

But this strange country that has no regulations has made one of the most attractive policies for the auto industry in the world;

With the main orientation of "encouraging local assembly and promoting the development of parts manufacturing and automobile industry", as long as it is assembled locally in Egypt, 45% of the vehicle price of parts and components can be purchased in Egypt, you can enjoy a series of preferential packages.

This package includes: a reduction in the import duty on parts by 2%-12%. The government will subsidize 50% of the logistics cost of locally assembled and re-exported car products, and give 10% of the value of the exported car back!

This Nima is like an old bustard whose girls are not patronized, standing on the street and shouting to the men on the street: "Masters, I beg you to come!

Not only that, but the "One Belt, One Road" policy agreed between China and Egypt stipulates that Chinese enterprises investing in Egypt can also enjoy lower taxes and cabbage prices......

After seeing the information sent by the group's marketing department, Li Fanyu drooled.

With these policies, and Hongguang is too suitable for the Egyptian market, Li Fanyu got up with the idea of doing his job. However, there were other reasons that made him decide to insert Huaicheng Factory into Egypt.

That is, Egypt's unique geographical location and fantastic international policy!

Let's start with the geographical location.

Egypt is located in the northeast of Africa, spanning two continents: Asia and Africa. The north can go directly to Europe through the Mediterranean, so in Li Fanyu's view, entering the Egyptian market can be used as a springboard to radiate Africa, Europe, West Asia, the Middle East and part of the former Soviet Union. All of this adds up to a very large market!

In addition to 50% freight subsidies, 10% of the funds returned, and the "Belt and Road" brought by the preferential treatment. Egypt has a large population below the poverty line, so labor is also cheap.

But what's important, what's more!

It is Egypt that has concluded free trade agreements with most countries in Africa and established common markets – such as the "Southeastern African Common Market" known simply as COMESA.

The common market includes 19 African countries, including Egypt, Ethiopia, Burundi, Tiputi, Zimbabwe, Comoros, Kenya, Rwanda, Malawi, Mauritius, Swathland, Sudan, Uganda, Zambia, Namibia, Madagascar, Eritrea, Seychelles, Congo.

According to the regulations formulated by COMESA in 09, low-tariff or zero-tariff trade preferences are granted to each other for automotive products that have reached the local production ratio in the common market.

If you build a factory in Egypt, you can trigger this trade preference as long as the local production ratio reaches 40%.

In other words, there are basically no tariffs when cars are produced after the establishment of the factory and then entered the COMESA member state!

And these member countries are also developing countries or even underdeveloped countries.

These countries account for the vast majority of low- and middle-income groups, and overall purchasing power is low. Due to the climatic conditions and the restrictions of road transportation in these countries, price and road adaptability have become the primary factors for residents to consider when buying a car.

In Li Fanyu's view, these conditions are completely specially formulated for Hongguang!

Don't go to Egypt to build a factory, and then slowly map the African market......

I'm sorry for those black uncles who are waiting to be liberated!