Why Are Joint Venture Cars Expensive?

[Jodi]

Joint venture cars are expensive for the following reasons: 1. Domestic cars lag behind joint venture cars in core technologies: Mainly, domestic cars are behind joint venture cars in core technologies. The engine technology of joint venture cars is years ahead of domestic cars. Although their engine manufacturing costs are low, the technical level is far superior to that of domestic cars. 2. Joint venture cars have longer R&D periods: Domestic cars innovate quickly. Because the R&D cycle of domestic cars is very short, a new car can be developed from scratch within a year. However, brands like Toyota, Honda, and Volkswagen introduce new models at a much slower pace, as their R&D cycles are longer, taking at least two to three years.