Stocks in global carmakers were rise on the rise on Tuesday, April 10, after Chinese President Xi Jinping pledged to reduce tariffs on imported cars.
Auto and car components makers drove Germany's Dax higher on Tuesday. Tyre maker Continental AG (CTTAY) saw shares surge more than 3% in the first hour of trading to €229. BMW AG (BMWYY) stock gained 2.56% to €90.62. Volkswagen AG (VLKAY) were marked 2.23% higher at €168.02.
Germany's Daimler AG (DMLRY) , the maker of Mercedes-Benz, gained 1.82% to €66.14, against a 1.11% rise for the Dax.
Mercedes-Benz last week reported its strongest-ever quarter. The biggest sales driver worldwide was China with a new record of 169,932 cars delivered from January to March, an increase of 17.2%. More than two thirds of all the cars sold there were also produced in China, Daimler said.
In a Tuesday speech at the Boao Forum for Asia, China's response to Davos, President Xi spoke of increasing imports, lowering foreign-ownership limits on manufacturing and expanding protection to intellectual property.
Xi's pledge to significantly lower tariffs on imported vehicles came hours after President Trump on Monday tweeted about China's 25% tariff on cars from the U.S.
Xi said the government will try to implement the policies as early as possible, but didn't offer specific details.
A decrease in tariffs would mean the opening of the world's biggest car market to foreign companies.