Why Are Domestic Cars Cheaper Than Joint Venture Cars?

[DiKeira]

There are many reasons why domestic cars are cheaper than joint venture cars. Below is a detailed explanation of the reasons: Differences in the Three Major Components: The three major components of a car consist of the transmission, chassis, and engine. Domestic cars started developing these three major components relatively late, so there is inevitably a significant gap in quality compared to joint venture cars. As a result, domestic cars can only compete on price to attract consumers. If domestic cars were priced similarly to joint venture cars, their sales would undoubtedly suffer. Brand Effect: Many consumers prioritize the brand influence of a car over its performance when making a purchase. Joint venture cars have significantly stronger brand influence than domestic cars, and they also invest much more in advertising. Joint venture cars indirectly pass on these advertising costs to the price of the cars we buy. Excessive advertising also leaves a deeper impression in our minds, leading us to favor joint venture cars when making a purchase, believing that they are superior.