Because I don't want to mislead people with wrong figures. When they asked me its worth, they asked it w.r.t. importing it to Pakistan. I said, for the price of one Pakistani Corolla, you can get two. Now, I don't know if anyone wants to import a brand new one... You can well judge the price of Corolla when you can get a used Porsche for around 300K - 400K HKD, that makes 3Million to 4Million PKR. And quite frankly, it is you from whom I got to know the price of Corolla here...
- Their economy is bigger than pakistan. roughly $200B+ if u consider the total product. All of that squeezed into a very tiny little package...But comparing manufacturing capabilities (in terms of quantity ) , pakistan is ahead of them. HK economy (source=CIA) is more than 90% services and only 10% or so manufacturing..
their leading product is services.
So if u look at the price of corolla in pak and HK. Both are reasonable in their own place. Putting all these extra equipment in the local corolla would raise the price upto the same level as HK one.....Given that, Toyota indus is running quite inefficiently and not making as much profits as they could have...I think they are barely able to make any real considerable profit ( keeping in mind that they have to convert all the PKR back to foreign curreny and the rates are quite inprofitable for them ).....
In short, the sole cause of high car prices, considering that the materials are cheaply availble here, yet a finished car costs so much is simply because all the companies are foreign owned....And perhaps also because many of them are public companies. High interest rates force them to make a higher profit margin to maintain dividends. And that shud explain the higher prices of cars in pakistan ( considering our purchasing power )....
thank u
EDIT= source for price list: http://www.crown-motors.com/tch/price/images/ToyotaPCPriceListChinese_May25_2011.pdf
You might be right, but I am not going to compare Hong Kong's economy with Pakistan's. When you say they have 10% manufacturing only, why do you forget the three initials that come with Hong Kong SAR (Special Administrative Region). It is the special administrative region of China... They manufacture everything themselves. China is a very clever state. They have made HK part of global organisations and have kept them away so that those organisations can't interfere with them. HK is a part of everything. Now, when they have to trade, they trade it from HK. HK is not what it looks.