Originally posted by SeeTees:
On average the OMV of a City is around 14k while the Vios is around 12k. The difference of 2k is then magnified by the Govt Taxation systems of ARF, Customs, GST etc etc etc (total a factor of 2.35) so the difference amplified to be $4,700. The Vios (A) is going for around $52~53k and the Basic City (A) is selling for aroung $59k. Minus off the difference of 47 and the rest of 1k + are additional Profit for KM. BM is a volume driven company becos it's a listed company. KM is a profit driven company becos' its listed on KLSE not in SGX. Hitting the number 1 spot by volume have never been KM's strategy in Singapore if you noticed...
Insightful post. Tks
Still, i was under the impression that all companies (whether listed or pte Ltd) are always profit driven, regardless of whether you sell in volume or offer a premium vehicle.
Honda cars have always seemed on the pricey side; evidently, from a technical point of view, their product is level with BM for most of the chassis. But the price range they offer is always significantly higher. When you consider the difference, there does not seem to be any worth investing in a product that reaps equivalent returns when compared to a competitor.
After all, cars are liabilities, after 10 years, most people scrap them.
The only reason i can see is that Toyota has achieved a creditable namesake in the market and can afford to dip their selling price based on the assumption people go for value-added quality. Then their manufacturing EOS kicks in to permit heavily discounted prices.
Honda prefers to tap a niche market by trying to classify and market their models as special products which will be worth a little more, enticing those who prefer an exclusive appeal that accompanies their vehicle ownership.