MG HS ; Dedicated Discussion, Owner/ Fan Club Thread

[sk_cooldayz]

They don’t let people import jdms duty free

JDMs are not duty free. You have to pay duty on depreciated price of used car import.

[pwuser159259702854]

That’s what I’m saying the government doesn’t let anyone import cars duty free and MG is no different they import and pay duty for their amount

[usman19854]

Declaring product value at less than its intrinsic cost is dumping and Chinese firms are notorious for doing it which led to strict enforcement of anti dumping laws in Eu, they've found an ideal partner in our local musk.

[alphab]

1.Question is MG is declaring HS price as 11600$ (1844000rs) and giving taxes on that amount.
If MG-JW is getting that price from MG global then why on earth they are selling this at 5.5M rs
w**strong text**hile their cost after paying taxes will be around 4.1M rs so they are getting gross profit of 34%
while suzuki,honda,toyota,kia are getting gross margins of 3%,6%,8%,7.5% respectively.
And all above have invested billions (Kia has to date invested 25billion rs).
While Mr afridi is getting gross profits 4 times while investing NONE.

2.If MG-JW is getting 22000$ (3.5M rs) from MG Global while still declaring the 11600$,in this scenario 11600$ are routed through banking channels while remaining 10400$ are routed through back channels For Money laundering.Because no company on earth sell its auto products at half the price to get market share if any pls qoute.
In the 2nd scenario who is looser Govt,companies who invested in plants.
who are the gainers Mr afridi,certainly not consumers because they are paying same amount for MG HS as paid by any other consumer of any country.

[pwuser159259702854]

I’m saying if you put the legal taxes out of the equation and just look at what they are offering as clearly government doesn’t look against them as their cars are still being sold then what are they doing wrong I mine people are liking the product a lot this money laundering thing is a different story
If saic themselves are sell these cars for declared amount to JW and there are no unpaid duties then what’s the problem??
MG haven’t been found guilty for anything and are getting a lot of praise in the market if people are liking it then these profits you are taking about aren’t a problem either at the end of the day they are here to make money plus why are other companies not doing this and investing on plants? Well I don’t know as certainly imported cars at this price point are much better then local counterparts
Maybe saic China themselves want to make a name for themselves in Pakistan so selling at cheaper rate or maybe it’s just the real value of the car as maybe we are mistaken to think this is a 22000£ car as the countries it is sold in have their own taxes as well

[shapeesh]

Where have you taken margins of Suzuki, honda and Toyota? They don't seem legit

[waqar747]

What else is not legit.. the tax calculation. How have you ended up with the landed cost of 4.1 million? The landed cost according to the CFR price of 11,600 is actually 5+ million. Someone shared the full calculation somewhere in this thread. I’ll try to grab it and share here again.
People have to get there figures right. Itni andher nagri chopat raj wali situation kiyun paint ho rahi hai?

[alphab]

These are all public listed companies and record available on PSX site.
PSMC

[alphab]

HCAR

[alphab]

Toyota

[alphab]

Read the post again or should i need to write it in Urdu

[alphab]

Do the maths,11600$ +14268$(123% tax on import price of 11600$)
=25868$=4113000rs which is 4.1M

[umairalizafar]

So what about freight, transport costs, storage costs, marketing costs, salary payments for employees etc? The margins you are sharing for other automakers have been calculated after deducting these costs.

[alphab]

No man these are just gross profit which is before all the above
You are talking about Net profit

[alphab]

Here it is full picture

[shapeesh]

you see, for one bunch you are taking their public statements with all the nitty gritties and posting that as their "profit percentage", on the other hand for the other "singular" entity you are just adding the materail cost + tax and calculating their profit from that. Thats some real incomplete analytics.
what about the remaining COGS for MG?
I understand that you in another comment are using the "gross' and "net" profit terminology, but comparing "gross" profit" from a public listing, which has to pay "dividents" on it with the "gross" profit claimed by you of another by "selling price -(material cost + customs)" is not comparable.
You do understand that public companies even include the cost of pencils in their costs of goods sales?

[krafiq]

To do away with this calculation FBR and customs have ITPs where customs totally disregards the declared value by the importer and imposes a fixed dollar duty. This used to be the case when JDM s were imported. FBR will surely employ this in upcoming budget

[rahulthemexican]

What about the fact imports are not allowed in the first place unless overseas pakistani? That comes before the whole under invoicing /dumping fiscso.

And even that's meant as a luxury for overseas only because they remit the duties first subject to remittance taxes as well... for personal use or gift to immideate family. Not milking this previdge as a commercial solution to hurt the local industry

[mgalaxy3]

What about the fact imports are not allowed in the first place unless overseas pakistani? That comes before the whole under invoicing /dumping fiscso.

Yes

That's the fundamental issue and an anti consumer policy.

Was there before MG too.

Now it just rubs salt on common citizens wounds after seeing thousands of cars being imported.

[rahulthemexican]

Sir when you do something against the law, I believe it is called illegal.

It is punishable by law.