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Old 26th July 2009, 10:24   #16
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Originally Posted by akj53 View Post
Incidentally does anybody have an idea as to why Toyota is not trying to start local assembling of all its new models
I think it is too keep quality levels high. Starting production in India will mean compromise on quality and if they manage to extract good quality from suppliers, it means the cost will go up. We must understand one thing that in India are very much cost oriented.

This is just a wild guess but I still believe that even if Toyota starts local assembly they can opt for SKD or CKD route. This can be helpful.
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Old 26th July 2009, 20:54   #17
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Incidentally does anybody have an idea as to why Toyota is not trying to start local assembling of all its new models
Beats me. That's a million $ question if I ever saw one. The Accord has been walking all over the Camry, which due to its CBU pricetag:

1. Is horribly overpriced

2. Manages terribly low sales

3. Appeals mostly to hotels. Long term repercussions on image? I think so.

Toyota is just being (unusually) lazy...plain & simple. They've been too slow on their feet in India. I mean, it's taken them all of 4 years to get the Fortuner here. An SUV which has a ready market waiting for it!

One of the main reasons behind launching the Landcruiser this monsoon has been to create a certain premium image of Toyota SUVs. And then, voila : You have the Fortuner in September!

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I think it is too keep quality levels high. Starting production in India will mean compromise on quality
Rubbish. Please understand that "assembling" means just that i.e. parts are sourced globally (atleast most of them) and the car is only screwed together here. I don't see any lack of quality in the Mercedes E Class, S Class or the BMW 5 series. Lets not make blanket statements here.

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and if they manage to extract good quality from suppliers, it means the cost will go up.
I find this statement ridiculous. And if you insist, it is applicable to the supply chain of any country in the world. India DOES have world-class players who can supply world-class parts.

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We must understand one thing that in India are very much cost oriented.
No one manufacturers parts in the "quality at any cost" mindset anymore. Germans used to do it 2 decades back, all history. It's all about the cost. In fact, our value-engineering techniques draw interest from around the world.
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Old 26th July 2009, 21:13   #18
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1) Rubbish. Please understand that "assembling" means just that i.e. parts are sourced globally (atleast most of them) and the car is only screwed together here. I don't see any lack of quality in the Mercedes E Class, S Class or the BMW 5 series. Lets not make blanket statements here.

2) I find this statement ridiculous. And if you insist, it is applicable to the supply chain of any country in the world. India DOES have world-class players who can supply world-class parts.

3) In fact, our value-engineering techniques draw interest from around the world.
1) The main point is that if quality parts are brought in from other countries and then screwed here, then again the localization level will be low. Again this will affect the price.

2) Yes, its applicable to supply chain all over the world and errors also occur. Supply chain management has to be again established for LC in India if toyota wants to start local assembly for this car with a bit of high local content to reduce cost.

3) Here is the end of story, cost. Establishing a new supply chain if parts are procured from India. Are there enough numbers to justify this. Toyota just posted its loss in many years. I dont think they will do this just for LC. If they are able to get reasonable numbers or are planning to export the car, I dont see any point in assembling the parts. Again if parts are assembled here they will have to undergo some sort of checking. Creating an assembly line for LC is tough considering sales. LC will find it tough agianst Rs. 60 lakh sedans because of brand.
Overall, I think its still not viable for Toyota to start local assembly for LC.

All the statements were made considering the low numbers this car is expected to have. With such low numbers, I dont think any manufacturer will be interested in locally assembling the car.
This brings me to LC100. Start production here as the car is withdrawn from most of the other parts around the globe. LC100 will still be better in offroading and presence than Q7 or Cayenne or X5 or ML.
Sorry if you felt I am making any blanket statements. In fact I would myself like to be updated.

Last edited by aaggoswami : 26th July 2009 at 21:17.
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Old 26th July 2009, 21:52   #19
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Everything said aside, I dont understand with that kind of a price tag why would anyone even think of buying it over a Range Rover? Now that the RR is officially available in India?
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Old 26th July 2009, 21:59   #20
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As mentioned by me before My most favorite car/suv in the world the Land cruiser.
seriously if i had to stick to one car for the rest of my life it definitely would be the LC or its equivalent Lexus.
But even after behind a avid toyota fan. The 1 Cr on road price is very steep.
i still believe they could have gone the CKD route to get the price down.
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Old 26th July 2009, 22:02   #21
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I had the same car on test for a day last week. Here is a summary of my experience:

- By any standards, the size of the vehicle is humongous. It dwarfs virtually all cars on the road and the road presence is unmatched.
- Smooth, refined engine but a significant amount of engine noise seems to seep into the cabin when accelerating hard. Also, the bulk (2.7 Tons) seems to mask the 282 bhp output of the car, so the performance is decent but nothing exceptional.
- Ride is comfortable and handling is decent especially in the sport mode. But, by being of a frame on ladder design it has inherent compromises when compared to monocoque SUV’s like the M or the X5.
- Space is good and seats are comfortable with the fronts even featuring heated seats (pointless in our market). Overall, it’s a good 8-seater which is a rare commodity in its segment in our market.
- Sound system looks exceptional on paper being a JBL Synthesis featuring 14 speakers etc. etc. but unfortunately I couldn’t test it since it was most of the speakers on the test car were non-functional.
- Touch screen is big and easy to use. In fact all controls are quite large in size and easy to use. Probably designed for operation even with gloves on given its larger markets like the US, Europe etc.
- Keyless go is truly keyless which means you can keep the key in your pocket & start the vehicle just by pressing the button. The car also unlocks if you touch the handle with the fob in your pocket/hand.
- Overpriced by about 20-odd lacs, a premium Toyota is charging for the Land Cruiser brand name. It does come with legal papers & a warranty though and you know the car does not have a dubious history.
- Interior Quality also is not on par with the competition at this price level. Some of the plastics and fitting feel decidedly down market and when compared with cars like the Range Rover, X5, ML, Q7 just do not have that quality feel.
- Loaded with almost all toys possible though. Electrically adjustable seats. Steering, mirrors, sun roof, hydraulically adjustable suspension, reversing camera, parking sensors, high-end audio system, GPS (with no Indian maps),
- Size is a handful and self-driving as an everyday vehicle is not possible. It needs to be chauffeur driven for everyday use since finding a parking spot for this behemoth is a challenge in itself.

IMO, its quite hard to justify the price tag for this monster. Personally, I would pick the X5/ML or the Range Rover at this kind of money.
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Old 27th July 2009, 11:31   #22
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Quote:
Originally Posted by aaggoswami View Post
The main point is that if quality parts are brought in from other countries and then screwed here, then again the localization level will be low. Again this will affect the price.
The LC's price would be substantially lowered if it was assembled here. Import duties on CBU are highest.

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Supply chain management has to be again established for LC in India if toyota wants to start local assembly for this car with a bit of high local content to reduce cost.
India still isn't ready for a 50+ lakh car to have a "high local content". Reason : Numbers are too low. Again, Aagoswami, we are NOT discussing local part sourcing, but rather assembling the LC here with imported parts and thus resulting in lower duties / taxes.

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With such low numbers, I dont think any manufacturer will be interested in locally assembling the car.
An S Class can be locally assembled, and an equally reputable SUV cannot? I'd disagree there.

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This brings me to LC100. Start production here as the car is withdrawn from most of the other parts around the globe.
It will be fool hardy on Toyota's part to introduce a discontinued model at a premium price in India. Fat chance.

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Originally Posted by iraghava View Post
- Overpriced by about 20-odd lacs, a premium Toyota is charging for the Land Cruiser brand name. It does come with legal papers & a warranty though and you know the car does not have a dubious history.
Agreed. Neat summary of the LC, Iraghava!
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Old 27th July 2009, 12:23   #23
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The front looks good but overall I find it's quite average in looks and for the kind of money they are charging- It's a boring looking behemoth.
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