Toyota's Luxury brand Lexus studying plan to set up assembly plant in India
, ET Bureau|
Oct 25, 2017, 10.05 AM IST
Lexus, the luxury car brand of Toyota Motor Corporation is considering the possibility of setting up an assembly plant in India.
The company which entered India with three hybrid vehicles in early 2017 has been already hit by the higher cess on hybrid vehicles and couple that with steep import duty, it may have compelled Lexus to look at a local assembly.
If they decide to locally assemble vehicles, India will only be its third vehicle making base outside of Japan and North America.
"The Taxes are so hard, so we are now studying. I don't know when it will (the plant be set up) but we are studying," Lexus President Yoshihiro Sawa told ETAuto
As against import duty of over 100%, the assembled vehicles attract levies of about 30-40%.
To be sure, Lexus's global rivals, Mercedes Benz, BMW, Audi all have a local manufacturing base. Even Swedish car maker Volvo recently started local manufacturing in India.
Lexus has set up four dealerships in India spread across key markets Of New Delhi, Gurugram, Mumbai, and Bengaluru and sells sedan ES300h, crossover RX450h, and SUV LX450d. The company announced its independent structure in India separate from Toyota Kirloskar.
Sawa says the duty structure in India is high, but it is likely to remain so and Lexus will have to find ways to tap into growing Indian market.
"This is just a starting point, we would add more vehicles and add dealerships. India has many affluent buyers and that shows a good potential for future. I think it was a good start for the company, with an expansion of dealership led by TKM (Toyota Kirloskar Motors), we should grow, " Sawa said.
The company has a significant presence in evolved markets of US, Europe, and Japan, but the emerging markets hold a strong growth potential for Lexus in the future on a low base.
On the competition from the likes of Tesla on the EV front, Sawa said the company is exploring all possibilities right from a hybrid, electric, FCV amongst others.
"We don't want to follow German car makers, we want to differentiate Lexus from others, we want to provide amazing ownership experience, which you will see in the future, " added Sawa.
The company is also not ruling out more Compact offerings in future.
(The correspondent traveled to Tokyo Motor Show at the invitation of Toyota Kirloskar)
The company which entered India with three hybrid vehicles in early 2017 has been already hit by the higher cess on hybrid vehicles and couple that with steep import duty, it may have compelled Lexus to look at a local assembly.
If they decide to locally assemble vehicles, India will only be its third vehicle making base outside of Japan and North America.
"The Taxes are so hard, so we are now studying. I don't know when it will (the plant be set up) but we are studying," Lexus President Yoshihiro Sawa told ETAuto
As against import duty of over 100%, the assembled vehicles attract levies of about 30-40%.
To be sure, Lexus's global rivals, Mercedes Benz, BMW, Audi all have a local manufacturing base. Even Swedish car maker Volvo recently started local manufacturing in India.
Lexus has set up four dealerships in India spread across key markets Of New Delhi, Gurugram, Mumbai, and Bengaluru and sells sedan ES300h, crossover RX450h, and SUV LX450d. The company announced its independent structure in India separate from Toyota Kirloskar.
Sawa says the duty structure in India is high, but it is likely to remain so and Lexus will have to find ways to tap into growing Indian market.
"This is just a starting point, we would add more vehicles and add dealerships. India has many affluent buyers and that shows a good potential for future. I think it was a good start for the company, with an expansion of dealership led by TKM (Toyota Kirloskar Motors), we should grow, " Sawa said.
The company has a significant presence in evolved markets of US, Europe, and Japan, but the emerging markets hold a strong growth potential for Lexus in the future on a low base.
On the competition from the likes of Tesla on the EV front, Sawa said the company is exploring all possibilities right from a hybrid, electric, FCV amongst others.
"We don't want to follow German car makers, we want to differentiate Lexus from others, we want to provide amazing ownership experience, which you will see in the future, " added Sawa.
The company is also not ruling out more Compact offerings in future.
(The correspondent traveled to Tokyo Motor Show at the invitation of Toyota Kirloskar)
