Why does a RX-8 cost ¥2,600,000 (AUS$26,000) in Japan but costs $55,840 here in Australia?

Question

I was looking at foreign prices of cars that are sold here in Australia, and found that we Australian's are paying alot more for cars than overseas consumers.

The RX-8 here in Australia is $55,840, but in Japan, it's ¥2,600,000, which at the exchange rate at 30/05/2008 ((¥100.73/AUD$1), is about $26,000.

Where does the extra $29,840 come from?

Clearly we have to take away GST (I don't know Japan's tax regime, but we'll assume the have no GST or VAT). This would take the RX-8 in Australia down to $50,763. Now lets take away customs duty of 10% - leaving $46,148.

Lets take another $1000 in shipping costs away, and we'll give it a nice round figure of $45,000.

That's still $19,000 more. Obviously when our dollar was weaker, the cost of the car would have been more. But the lowest our dollar has been against the yen in the past 8 years is ¥55.82/AUD$1 - but that was in the year 2000!

Who can explain the differential pricing we face?

Answer 1

Massive import taxes and some tariffs.

Answer 2

Some factors are:

1) Taxation

2) Transportation costs

3) Price discrimination by supplier

4) Sales/marketing costs

5) Local competition level and standard margins by resellers.