Why Do Car Brand Prices Differ in Different Countries?

This is what I observed in China
Mazda CX5 ~ $180000
Subaru XV ~ $320000

Assuming price is proportional to quality, we can say that subaru xv is better than Mazda cx5.

However
This is what I observed in Singapore
Mazda CX5 ~ $140000
Subaru XV ~ $120000

Why is Mazda more expensive than subaru here? Imply that Mazda is better quality than subaru?
What are some reasons to justify this paradox?

Side note- Mazda~Subaru~$33000 in Australia

Comments

  • Assuming price is proportional to quality

    You know what they say about assumptions.

    Singaporeans have to pay a CoE, which will probably be $80k of the price (but varies with demand). Different countries have different taxes.. Different brands have different levels of prestige, etc. Maybe the Subaru's are imported and the Mazda's made locally in China.

    Both of those cars can probably be had in the US for nearly half as much as here..

    • hm interesting.. i like the theory of "Maybe the Subaru's are imported and the Mazda's made locally in China". Any other reasons to justify the above observations? i.e why is it more expensive in singapore for mazdas?

      • How long is a piece of string? Maybe the coe is 20k more expensive. Or maybe the base model subaru is more richly appointed? Maybe you could ask a dealer in Singapore why.. tbh I don't care why.

        Here's something that will blow your mind…
        http://www.news.com.au/finance/business/it-is-cheaper-to-fly…

        • Both of those cars can probably be had in the US for nearly half as much as here..

          Well not sure about those two brands but a Camry (the top US seller - or was) is pretty much the same price here as in the US or maybe even cheaper.

          Now BMW and other higher end brands are much more here

          Base Camry on road $AUD27K, US $USD24K

          e.g.

          US http://www.autotrader.ca/cars/toyota/camry/?prx=-1&prv=Ontar…
          AUST http://www.carsguide.com.au/cars-for-sale/NEW_T2716A/TOYOTA-…

        • unless coe is more expensive for mazda than subaru, i dun see why subaru is more expensive than mazda in china/aus. I'm trying to think of an economic theory to explain this without going to a dealer in singapore.

        • -1

          @Thenarrator: maybe first check your prices.

          Actually spend less than one minute looking at the dealer websites. You don't need an economic theory to explain why rrp for the subaru is $110k and the equivalent mazda is not comparable. You just need some eyes.

  • Subaru XV ~ $320000

    is that price for real?

    • Just checked the subaru.cn website, it seems the price is about RMB200k, which is around $42k aud.. I'm sure there's some tax on it too. So I guess not.

      According to the Mazda china site, CX5 is about RMB170K, approx $35k aud.. It's manual 2wd, not auto awd.. Those ones are… approx RMB200k.

  • +1

    You're kidding right? You've never thought of market driven supply & demand, varying import costs, etc etc. The list goes on.

    If you'd stop to think about it in the same length of time it took to create this post, I'm sure you could come up with some answers.

    • yeah i thought about it but i thought they're (mazda cx5 and subaru xv) are both made in japan, the parts are in japan, imported to the same country (ie china) and besides consumer demand for subaru being higher in China than in Singapore, i cant think of anything else that suggest this observation.

    • You could spend less time than writing this post to peruse the company websites for each country and have the answer without causing brain strain :)

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