I saw that a brand new Toyota avanza costs arround 14k euros in Indonesia.

This seems very cheap for me. For sure toyota saves on some parts so that the Cars can be Sold more cheaper over there.

Does anyone know how these Toyota can be sold so cheap in Indonesia?

  • marketdipper@alien.topBEnglish
    1·
    10 months ago

    Because those Toyotas are made in Indonesia and are subject to MUCH less taxes. Japanese imported Toyotas, BMWs, Mercedes etc can be taxed more than 100% here. Also, the cars have much lower hp and specs in general.

    • fikri_inter-business@alien.topBEnglish
      1·
      10 months ago

      Specifically for avanza, they don’t get taxed at all. You only pay regional government levy/fee. Indonesia only tax cars that meet at least one of few requirements:

      1. Local production factor (conceptual design, R&D, raw material, and spare parts) of less than 80%

      2. Displacement of 1.5L or higher

      3. Sedans