Toyota's luxury car division Lexus is evaluating local assembly for the India market reports ET Auto. Lexus entered the Indian market in March this year with the ES, RX, and LX. All three models are CBUs loaded with heavy import duties.
Speaking to ET Auto, Yoshihiro Sawa, Lexus India President said:
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.
Currently, Lexus has two manufacturing bases. One in North America and one in Japan. India could become the third base for Lexus in the world. Local assembly will help reduce ex-showroom prices of Lexus cars in India significantly and will enhance its competitiveness in a market dominated by German brands. All mainstream luxury brands in India have an assembly line in India.
Lexus sees great potential in India. The company plans to expand its footprint by opening up dealerships and adding new products to its portfolio. Local assembly will enable it to tap into the growing Indian luxury car market better.
The most affordable Lexus currently on sale in India is the ES 300h which retails for INR 53.46 lakhs (ex-showroom Delhi) followed by the RX 450h priced from INR 1.26 Crore (ex-showroom Delhi). The flagship LX 450d retails for INR 2.33 Crore (ex-showroom Delhi).
[source - ET Auto]