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Reply #3 Kbay's post
that's due to taxes and lack of scale.|
our market is only 600,000 unit in a good year and can fall to 500,000 units in a "credit squeeze" or "low confidence enviroment"
China makes the good move of exporting it's better made cars, a little trial and error! If it can sell in Malaya, it should also sell in Hong Kong, Singapore and Taiwan. British Club states will also be receptive once they see those cars in Malaya, Hong Kong and Singapore roads. The Korean and Japanese are hard market to break into! (very nationalistic and protective of their automobile - they have no choice in industry, unlike Malayans!)
no point exporting QQ car, which is for the working class in China where we already have well made, Kancil, Myvi cars selling for Rmb50,000 & Rmb90,000 respectively. (that's the range of price for the Proton Saga, Persona and Waja <Rmb120,000> platforms too!)
CHINA HAS BIG ADVANTAGE OF SCALE, and low labour cost.
Bigger sales volume means, smaller profit margins needed - and allow automation when it's economically cheaper.
Now a big problem it's China Engineering worker's discipline and work quality/knowhow! (that's my opinion!)