What’s Covid-19 got to do with the price of cars?

What’s Covid-19 got to do with the price of cars? - Hello loyal readers FeedGoogle, In the article you are reading this time with the title What’s Covid-19 got to do with the price of cars?, We have prepared this article well for you to read and take information in it. hopefully the contents of the post Article Malaysians, what we write you can understand. Alright, happy reading.

Let’s talk about new cars. An imported new car, known in the trade as a completely built-up (CBU) car, will generally cost twice as much as a locally-assembled car, because import taxes raise the price of the CBU car and conversely, makes locally assembled cars more affordable.Essentially, local assembly happens because emerging nations recognise the auto industry as being a source of employment and economic growth.In most cases, locally assembled cars would cost more than CBU cars if not for import taxes. An automotive industry based on local assembly of completely knocked down car parts is less efficient. The cars end up as being comparatively more expensive, but buyers accept the higher price as a contribution towards nation-building and the promise that the motor industry will eventually grow and make products at a competitive and sustainable price.Local assembly is ineffic…