German based Volkswagen is planning to step into Pakistan

[Shamraz_Khan]

Re: German based Volkswagen is planning to step into Pakistan

@kakaballi

The exorbitant prices come from transfer pricing. The ‘parent’ companies of these car assemblers (Honda, Suzuki, etc.) sell parts to them at higher prices. It transfers to them the profits without paying tax in Pakistan. Higher priced parts of course mean higher priced cars.

India wouldn’t let car ‘manufacturers’ import parts. They have to be made in India.

We don’t have car industry we have car a mafia that controls prices. Btw, noticed outdated & substandard models are assembled at exorbitant prices, but the mafia is protected by politicians who directly or indirectly benefit from this.