Why Are Cars Are So Expensive in Australia Compared to China - Whilst Tesla Is Not?

Lshrisme on 03/07/2024 - 20:37
Last edited 04/07/2024 - 10:14 by 1 other user

Toyota Corolla Cross in China: AU$18,000 (drive away price, 2.0L). The price here in Australia is $40,000

Toyota Corolla Hatch price in China is AU$17,000 (drive away price. cheapest model 1.2T or 1.5L). The price in Australia is $36,000 (just car price cheapest model 1.8L)

BMW 320i in China (drive away price AU$46,000）. Here in Australia. More than $70,000.

Tesla Model 3 Price in China is AU$46,000. The price in Australia is AU$55,000. it is quite a reasonable price considering import duty from China and GST.

Why can't other brands achieve a similar pricing level in China compared to Australia, when Tesla is able to keep its prices in China almost on par with Australia?

Automotive

Comments

  • ChickenAdobo on 05/07/2024 - 01:21
    -1

    I tell you why. Toyota knows that Australian loves to suck Toyota dikc so hard like a lollipop and at the same time, Free use with the an@l rape on jacked up prices. You only have to look at the RAV4 and hilux numbers.

  • HappyPuppies on 05/07/2024 - 01:48

    Margins and costs - Small market in Australia so margins need to be higher, also there is higher costs (e.g. labour and compliance) to operate a business in Australia. Australia is not a very business friendly country.

    The market is willing to bear higher prices as well - i.e. willingness to pay. There isnt much competition (ie no local brands) compared with China.

    • OzHan on 05/07/2024 - 15:35

      Just a few years ago, Toyota Corolla was priced at 20-25k, now over 40k. go figure. The size of market has not changed much at all.

  • koalabargains on 05/07/2024 - 01:58
    +1

    Everything is more expensive in Australia.

    Everything.

    Even things made in australia like res med cpap machines are sold for more than they are overseas.

    This is the way it is, this is the way it was, this is the way it always will be.

  • whatgift on 05/07/2024 - 06:52

    As always, cost using only exchange rate means nothing - you need to take into account what the cost of living is in that country and what people are earning.

  • payless69 on 05/07/2024 - 09:38
    -1

    Who out here needs anything else than a:

    Camry

  • Cluster on 05/07/2024 - 10:35

    We are a smaller market. Many cars (such as the Tesla) are made in China. They obviously don't have the transport, homologation, Customs, local distributor fees tacked on top of the price. Look at the specs of cars you're comparing. It was quite common to leave features off cars designed for poorer markets, such as extra air bags and other safety features, to save money. Make sure you're comparing like-for-like when it comes to budget cars.

    Cars for our market need to be made in right hand drive versions. Most of the world drives LHD. That increases cost. GM completely gave up on the RHD market.

    We're also a wealthier market. China is still a developing economy. Their words, not ours. If someone is prepared to pay $35k for a Corolla here, and there's a 6+ month waiting list to buy them, why should Toyota sell the car cheaper? You sell a product at what the market will bear. If you don't like the price then simply vote with your wallet. If enough people do the product will either be withdrawn or fall in price.

  • THICKnSLOW on 05/07/2024 - 10:44

    We don't make our own cars here and rely on the rest of the world, so at the mercy of supplier costs.

  • Eeples on 05/07/2024 - 11:10
    +2

    The market sets the price. If Australians are willing to buy new cars at a high price then the price will remain high.

    To help fix this stop buying a new car when your old car hits 100k km.

  • Ononono on 05/07/2024 - 12:22
    +3

    That's why I welcome the cheap Chinese cars. Other country manufacturers have been taking the piss for far too long, finally some real competition. Unfortunately there's still strong stigma against Chinese companies so probably another 5 years until it makes an effect.

    • koalabargains on 05/07/2024 - 12:54
      -1

      It doesnt last long.

      The chinese used to send double glazed windows over here for 1/10 the price of locally made. That was ten years ago. Now that they realised how stupid we are and how little choice we have, they sell them for 3/4 the local price. Still, you can get a good deal initially. It just doesnt last.

      • greatlamp on 05/07/2024 - 13:03
        -1

        Exactly, the significant discounts we are enjoying are essentially marketing expenses with launching a new brand.

        When the Fiat 500 was launched in Australia it was sold at around $14 k.
        The conversation was the same people are having now "Euro trash", "cheap rubbish", "resale value will be low" etc.

        Now the are from $23k.

    • HangryCakeStore on 05/07/2024 - 13:14

      The stigma comes mostly from westerner’s insecurities, or some trump like mindset

  • serpserpserp on 05/07/2024 - 13:35

    ICE car dealers treat Aussies with contempt and rip us off. But we just lap it up and refuse to buy EVs and the like. So they keep laughing at us and gladly take our money.

  • CurlCurl on 05/07/2024 - 16:02
    -3

    Who out here needs anything else than a:

    Camry

    Sorry, but I wouldn't be seen dead in that boring piece of shit.

  • YRT on 05/07/2024 - 16:19
    -1

    Because with fiat currency the exchange rate is arbitary and not a true reflection of supply and demand - fiat being fiat

    In China's case, CNY is probably around 30% - 50% undervalued IMO. I'd imagine CNY will go up in the next few years.

  • Hangryuman on 05/07/2024 - 17:50

    'Toyota Corolla Cross in China: AU$18,000 (drive away price, 2.0L). The price here in Australia is $40,000 … Tesla Model 3 Price in China is AU$46,000. The price in Australia is AU$55,000 … Why can't other brands achieve a similar pricing level in China compared to Australia, when Tesla is able to keep its prices in China almost on par with Australia?'

    uh - how about the difference in median income ?

    While Oz may have a median income of the order of AU$50Kpa, I won't believe the fantasy figures from the CCP of similar in China - when I see things like 280M people earn less than AU$2Kpa - https://youtu.be/JE93dl0p1Uw?t=660

    So while there may be some folks with high incomes in China, recent stories of factories leaving for India, Vietnam, or Cambodia, with '00,000's of job losses and collateral closures of many many support businesses, suggest to me things are looking worse over there.

    So in short - cars in China may be 1/2 the Australian price, but if your income was 1/25th of your Australian income, do you think you'd be rushing to buy a car in China ?

    As for Tesla being the same price, I'd guess a simple marketing decision to keep the premium price, like Apple maintains strict price controls on iPhones to prevent discounting. So folks can imagine Tesla as a luxury car - despite the quality complaints and the fact that the Tesla Uber ride we took that I found - bumpy. Yeah nah thanks.

    • shrisme on 05/07/2024 - 21:00
      -2

      We only discuss the price of cars, not talking, politics, income or other issues.

  • PortK on 06/07/2024 - 06:48

    I don't understand what it's like in China, but I think Australian consumer law and warranty claim costs are factored in. Given Australian labour is much higher, the cost to service customers and fix cars (even poorly done) is significantly more.

  • payless69 on 06/07/2024 - 09:48

    Why are car $tealerships allowed to steal?
    Because they can!
    Total person hours on quickest built model Volkswagen: 300h
    Sick boy Elon gets hated for doing it in 100h even on mod Y.

  • rumblytangara on 06/07/2024 - 10:02
    -1

    This thread is either naive or misguided. Why are you looking at car prices?

    Look at the cost of most things in China and they are cheaper.

  • Dollar Dreamer on 06/07/2024 - 11:34

    Because every monkey in Australia that presses a keyboard button a few times a day wants to be on $120k a year. /Thread.

  • bones7au on 06/07/2024 - 12:01

    New Chinese EV sold out in 24 hours

    "Xiaomi announced it received 88,898 firm orders for the SU7 within 24 hours following the launch. The test drives started on Friday in China in 59 stores in 29 cities nationwide, resulting in overcrowded venues. The deposit customers must pay to lock in their car is 5,000 yuan (850 USD)."

    https://carnewschina.com/2024/03/30/xiaomi-su7-sold-out-for-2024-within-24-hours/#:~:text=Xiaomi%20announced%20it%20received%2088%2C898,5%2C000%20yuan%20(850%20USD).

  • xrayed giraffe on 06/07/2024 - 12:10

    Companies will charge whatever they can get away with.
    These are the price points that the reflective citizens can and will pay

  • 11112007 on 06/07/2024 - 14:47

    Toyota in China, like most other manufacturers have to form a joint venture with a local organisation to be able to sell cars locally.

    Toyota partner with FAW and GAC:
    https://en.wikipedia.org/wiki/FAW_Toyota
    https://en.wikipedia.org/wiki/GAC_Toyota

    You will see on these wiki pages that each Toyota JV manufactures different models to each other and also sells in different regions of China (they dont overlap).

    This is why the price is not comparable to the Toyota's that we get here, which are mainly manufactured by Toyota direct in Japan and are shipped here (logistics, tax etc that others have mentioned already. This is also why Tesla price is slightly more comparable, Tesla manufacturer direct in Shanghai but have control over global pricing.

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