vietnam civic for 38g?
note: i didn't write thisVO4210();VO4216();VO4273();VO4274();VO4509();V O4215(); document.all('IDM_Category_'.concat(1861)).style.d isplay=''; High tax makes Honda Civic price high: manufacturer10:37' 02/10/2006 (GMT+7)Ms Asako Suzuki.
VietNamNet Bridge – Asako Suzuki, Deputy Director General of Honda Vietnam, explains why the manufacturer has offered such a price level, which has proven to be too high for Vietnamese people.
To err is Honda?
Vietnamese customers have abandoned the hope of buying a Honda Civic since the manufacturer offered overly high prices of between $31-38,000. How could you comment about this?
Civic has the localisation ratio of 23%
Ms Suzuki said that Civic had the localisation ratio of 23%, i.e 23% of locally made content.
Regarding the localisation plan, she said that Honda Vietnam would need more time to consider the market situation and import tax policy before making final decisions.
The customers despair because they have not got enough information about the Honda Civic, and about Vietnam’s automobile industry and domestic market, which is far different from other countries.
We regret that we could not control rumours about Honda Civic prices. Rumour have it that a unit of Honda Civic is priced at $20-25,000 only; however, please note that car prices are declared only when manufacturers officially launch their products onto the market.
In fact, people predicted that Civic would sell at $20-25,000, because Civic is selling at the same levels in other countries. How could you explain the fact that Civic in Vietnam is much more expensive than in other countries?
We have tried to cut down production costs in order to get the prices lower than the prices of other models on the market. I must say that the prices for Civic are 10% or even 20% lower compared to the levels at the beginning of the year, though Civic has many outstanding characteristics.
Let’s me explain. The current taxes are very high, which make 41% of the total production cost of Civic. These include the import tax on car parts, luxury tax and value added tax. The other 59% of the total production cost comes to other expenses, including sales, accessories, staff and machinery depreciation.
Do you mean that Civic price is high because of high taxes?
It is true. With the luxury tax rate of 40% which was applied in 2005, the price of Civic 1.8 would be $28,500/unit, and with the tax rate of 24% as it was in 2004, a Civic would be priced at $25,500 only.
It is true that Civic in Vietnam is more expensive than in other countries, because of Vietnam’s smaller market which results in smaller production scale. You may know that a small market will mean small production scale and higher production cost.
Honda Vietnam has just begun making cars and output is modest compared to the output in other countries. For example, some 30,000 Civics are churned out every month in the US, while Honda Vietnam can make 300 units a month only.
It is clear that Civic is more expensive than predicted, which I think will cause disadvantages to the manufacturer, Honda Vietnam. How will Honda Vietnam compete with its rivals, the sedan manufacturers in Vietnam?
As I said, Honda Vietnam has tried to offer the best and reasonable prices. The selling prices depend on many factors, many of which are not in our control.
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Originally Posted by 1439/2000
why kinda club?
