Why are cars so much more expensive in emerging markets? - Mercedes-Benz Forum

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post #1 of 11 (permalink) Old 05-10-2010, 07:26 PM Thread Starter
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Why are cars so much more expensive in emerging markets?

For instance, a 2010 E200 (yes, 200) costs the equivalent of 80,000 US dollars in China. I don't know what the reason behind that could be. Can anyone shed light on this?

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post #2 of 11 (permalink) Old 05-10-2010, 08:39 PM
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Taxes. The Government doesn't want people to drive or own personal cars. They want the people to ride bikes, walk and use public transportation.
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post #3 of 11 (permalink) Old 05-10-2010, 10:16 PM
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Someone has to pay for the bailouts and "cash for clunker" programs.
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post #4 of 11 (permalink) Old 05-11-2010, 05:02 AM
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That's good driving in car. Someone has to pay for the bailouts. They want the people to ride bikes, walk and use public transportation.
post #5 of 11 (permalink) Old 05-11-2010, 05:34 AM
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Quote:
Originally Posted by Benzlov3r View Post
For instance, a 2010 E200 (yes, 200) costs the equivalent of 80,000 US dollars in China. I don't know what the reason behind that could be. Can anyone shed light on this?
As the E and C class is now built in China, maybe you should ask MB or even Beijing? An imported E class would cost this much because of the silly import duties imposed by Beijing.

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post #6 of 11 (permalink) Old 05-11-2010, 06:37 AM
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Post In Russia and former Soviet Union

I'm more familiar with the market in Russia and the former Soviet Union, where there is no push to put people into public transportation or bicycles instead of private transportation.

I believe the pricing is so high because, as others mentioned, taxes primarily. Then factor in lack of competition within the brand (pricing doesn't vary much from dealer to dealer; all of the dealers of new Mercedes may even be owned by the same master franchiser), and competition from brand to brand. Such a market is somewhat akin to the US 30-40 years ago, when there were fewer dealers and you could bring in a gray market car for a lot less than from the dealer (which is not easily done in Russia).
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post #7 of 11 (permalink) Old 05-11-2010, 09:04 AM
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Thes is no shortage of millionaires in China....

China has more millionaires than UK for the first time - Telegraph
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post #8 of 11 (permalink) Old 05-11-2010, 09:15 AM
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Thes is no shortage of millionaires in China....

China has more millionaires than UK for the first time - Telegraph
I have not had time to read the link but it is obvious in a country that is becoming industrialised and full of forward thinking people that millionaires will appear and on a china scale, for every euro rich man there will be 100 asian rich dudes.

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post #9 of 11 (permalink) Old 05-11-2010, 11:31 AM
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Small volume.

High startup costs.

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post #10 of 11 (permalink) Old 05-11-2010, 11:55 AM
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I guess we forgot "all capitalistic"
JUST BECAUSE WE CAN.
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