[TusharK]

The 2018 Lexus LS 500h was unveiled at the 2017 Geneva Motor Show. Now, according to a media report, Lexus could launch its latest LS 500h sedan in India in January 2018. It has been reported that dealerships have already started accepting bookings.



The new model is based on the Lexus Global Architecture – Luxury (GA-L) platform which is shared with the new LC coupe. It has a wheelbase of 3,124 mm and a coupe-like profile. The styling is based on Lexus’ recent design language which comprises of a large spindle grille with a chrome frame in the front flanked by tri-beam LED headlights and LED DRLs. The rear features wraparound tail lights with integrated chrome garnish. More chrome can be found along the door sills and around the windows.



The interior of the car is wrapped in dual-tone leather. The driver’s cockpit consists of a digital instrument cluster, while the centre console houses an infotainment screen. The door panels feature wooden trim pieces and leather with diamond stitching. The car is expected to be offered with features like reclining rear seats and active noise suppression.



The 2018 Lexus LS 500h is powered by a hybrid system which uses a 3.5-litre V6 petrol engine and two electric motors to deliver a maximum output of 354 BHP. The engine is mated to a 4-speed continuously variable transmission (CVT). Lexus claims that the car will do 0-100 km/h in 5.4 seconds. The LS 500h uses a lithium-ion hybrid battery that is claimed to be 20% smaller than conventional batteries and is thus lighter.



In India, the Lexus LS 500h will be pitted against the BMW 7 Series, Mercedes-Benz S-Class, Audi A8, and the Jaguar XJ L.

Source: Autocar India

[V.Narayan]

The car looks smashing and very sleek in real life. The interiors are rich and classy. They, I believe, plan to price it at Rs 2 crores which seems very steep to me. But my hearsay could be incorrect but I don't think it is.

[HKap]

Originally Posted by V.Narayan

The car looks smashing and very sleek in real life. The interiors are rich and classy. They, I believe, plan to price it at Rs 2 crores which seems very steep to me. But my hearsay could be incorrect but I don't think it is.

Selling it at 2cr is beyond ridiculous. The S class, new 7 series and the new A8 are established and the "aankh bandh karke le le" standard. If Lexus wants to establish themselves in India then they need to fix their pricing. If this car can compete with the germans on price then I think it can make a significant dent in their sales. At 2 cr? I dont think so.

[GTO]

The LS Series are phenomenal sedans - unbelievable opulence, comfort & refinement. I'll be surprised if it actually arrives in Jan as the model is just starting to ship internationally.

However, before launching more cars, Lexus should first get its CKD assembly in order. Else, these are just going to be grossly overpriced models with no takers in the showroom.

And a V6 for 2+ crores - come on!

[V.Narayan]

My pricing input came from the horse's mouth. They had a peek preview at the Jap embassy during a function. So I naturally sauntered off to check out even if I can't afford it by three miles. But then better sense may prevail on the pricing.

[Turbanator]

I believe, plan to price it at Rs 2 crores which seems very steep to me

Your source must be correct, given the prices overseas and comparing it with other cars from Lexus, I think it will be over Rs 2,5 Cr unless they get some concessions on Hybrids over Diesel. For example, comparing prices of Canada with Indian market, LX is priced at 109,000 CAD which Lexus retails at Rs 2,32 cr in India, LS500 is 134,000 CAD so expect numbers more in line with RR or Bentley If I am not mistaken, it does not come with Air suspension or rear massagers or the rear lounge like settings standard on BMW 7 Signature / A8L either.

Lexus should first get its CKD assembly in order. Else, these are just going to be grossly overpriced models with no takers in the showroom.

Very true, I don't see any meaningful business viability for Lexus as a company or dealers at these price point.

I'll be surprised if it actually arrives in Jan as the model is just starting to ship internationally.

Yes, but I will be surprised if they can sell in double digits in the whole year, as you wrote elsewhere, very easy to launch CBU, bring one car and do a press meet and gets free publicity. And @ 2,5Cr or so they are surely going to get a lot of attention and publicity

[HKap]

Originally Posted by GTO

However, before launching more cars, Lexus should first get its CKD assembly in order.

Not happening anytime soon I guess. They refuse to build cars in China for the fear of compromising on quality. They're outpriced by the Germans even in China coz all 3 of them assemble/manufacture cars in China but Lexus doesn't.

They have plants only in Japan and North America - that too for only the ES (USA) and the RX (Canada).

[V.Narayan]

Originally Posted by Turbanator

Your source must be correct, given the prices overseas and comparing it with other cars from Lexus, I think it will be over Rs 2,5 Cr

Your estimate could be it. When I wrote Rs 2 crores I meant Rs 2 crores and change.

Originally Posted by HKap

Not happening anytime soon I guess. They refuse to build cars in China for the fear of compromising on quality. They're outpriced by the Germans even in China coz all 3 of them assemble/manufacture cars in China but Lexus doesn't.

They have plants only in Japan and North America - that too for only the ES (USA) and the RX (Canada).

There will not be any local production or even assembly in the near or mid term future for the exact reasons HKap quotes. This I am quite sure of from my lay conversations with their senior team here.

[Vulken Auto]

I have seen this car at my toyota showroom couple of days back. This car looks sleek and massive. It reminds me of jaguar XJ series.

[GTO]

Originally Posted by HKap

Not happening anytime soon I guess.

But why? If Mercedes, BMW, Audi & Jaguar can assemble cars here, why not Lexus? It's sheer laziness. Their parent already has a splendid facility up & running in Karnataka. But then, this is the same group that took 4 years to bring the Fortuner here, and still sells outdated cars (Etios, Liva).

Until Lexus pulls up its socks on local assembly & pricing, the brand will have to watch the action from the sidelines.

[Vid6639]

Originally Posted by GTO

But why? If Mercedes, BMW, Audi & Jaguar can assemble cars here, why not Lexus? It's sheer laziness. Their parent already has a splendid facility up & running in Karnataka. But then, this is the same group that took 4 years to bring the Fortuner here, and still sells outdated cars (Etios, Liva).

Until Lexus pulls up its socks on local assembly & pricing, the brand will have to watch the action from the sidelines.

Not justifying but they don't assemble anywhere else except Japan, USA and Canada. USA and Canada was only cause of high volumes in US market which was their target market anyways.

Apparently their quality control and manufacturing process differs greatly vs Toyota and hence separate plants are required to make Lexus vehicles. A lot of automation and computerization.

Indian volumes will no ways warrant them to assemble a Lexus here. The amount of investments for such a plant even for assembly will be unjustified.

Check this:
http://www.autonews.com/article/2007...flagship-plant

http://wardsauto.com/news-analysis/l...-pyramid-japan

[Turbanator]

The amount of investments for such a plant even for assembly will be unjustified.

So what about the investments they made on a separate entity or the money spent by the dealership? I don't see any reasonable volumes for Lexus in near future with the kind of prices they have and this will certainly affect their expansion plans also. Chandigarh dealer which was to open a separate showroom adjacent to existing Toyota has probably delayed and tries to sell the Lexus vehicles which are personally owned by Dealer. Their dealership at Gurgaon is no different than Mercedes or Volvo by my experience or maybe they are choosy on the customers based on attire or otherwise

From my personal experience, my brother has spent much more money on a Lexus GX truck in Canada than I have on mine X5 here in India ( actually Nil on BMW due to service package), every time it goes for service after 7500 Km, spends are more like 400-500 CAD. Recently, front bearing and hub were changed ( 2015 MY - 45,000 KM) and were not covered under warranty due to wear & tear item, wonder if that speaks about Lexus quality or his driving? This alone cost more than 1000$ in parts and labor. Toyota parts are mostly cheaper here but difficult to say about Lexus at the moment. Last week our Petrol Innova's ( 2013 MY-25000 KM) horn stopped working when steering is in a straight position and Toyota dealers are asking Rs 13000 to change some wire that includes Airbag control as well, so things can go wrong and get expensive with any brand.

[GTO]

Originally Posted by Vid6639

Not justifying but they don't assemble anywhere else except Japan, USA and Canada. USA and Canada was only cause of high volumes in US market which was their target market anyways.

Important to note that Lexus doesn't really sell anywhere other than these countries either .

Indian volumes will no ways warrant them to assemble a Lexus here. The amount of investments for such a plant even for assembly will be unjustified.

If that's the case, Lexus will remain a marginal player in the luxury segment. And its weird designs & small engines (by segment standards) won't help either.

If Lexus wanted to fight the big, brute Germans, they should have been better prepared. They're brought a knife to a gunfight .

IMHO, Lexus will start CKD operations soon. Even Volvo has!!! It's easy peasy for any manufacturer.

Originally Posted by Turbanator

So what about the investments they made on a separate entity or the money spent by the dealership?

Well said. And those are very high end showrooms too.

[CrAzY dRiVeR]

Originally Posted by Turbanator

So what about the investments they made on a separate entity or the money spent by the dealership?

Absolutely. The Bangalore dealership is so jaw dropping grand! Loved the prime location and looks of it.

But I wonder how would they survive! Yet to see a modern Lexus on the roads.

[Vid6639]

Originally Posted by Turbanator

So what about the investments they made on a separate entity or the money spent by the dealership? I don't see any reasonable volumes for Lexus in near future with the kind of prices they have and this will certainly affect their expansion plans also. Chandigarh dealer which was to open a separate showroom adjacent to existing Toyota has probably delayed and tries to sell the Lexus vehicles which are personally owned by Dealer. Their dealership at Gurgaon is no different than Mercedes or Volvo by my experience or maybe they are choosy on the customers based on attire or otherwise

Agreed the investments on dealerships and marketing are large but an assembly plant will be much larger.

Also, I am not 100% sure of this but so far even the German marques when they launch a new car its in CBU form and they switch over to CKD assembly. The prices are a little lower but the CKD cars have lesser features. I remember the S class was like this.

So even though the car is CKD the advantage is not passed to the buyer but fatter margins to the manufacturer. Lexus is probably doing something similar. Getting the CBU's and having slimmer margins vs the Germans.

I guess its economics. Invest in assembly, and have large margins wrt volume or CBU with lesser margins and lesser investment.

What really is working against Lexus is not the CBU vs CKD it's the Govts. decision to penalise true hybrid cars which is the entire Lexus line up.

Originally Posted by GTO

Important to note that Lexus doesn't really sell anywhere other than these countries either .

I guess UK it does as well as middle east.

If that's the case, Lexus will remain a marginal player in the luxury segment. And its weird designs & small engines (by segment standards) won't help either.

If Lexus wanted to fight the big, brute Germans, they should have been better prepared. They're brought a knife to a gunfight .

I think they are starting slowly. Not coming out with the big guns. That way they can focus on customer relations / interactions. Have a look at V.Narayan's Lexus ownership thread. 2 top Japanese executives coming personally to meet with a customer? When was the last time we heard of a Mercedes, BMW or Audi exec coming to interact with a customer.

I would say more like choosing a Katana over a gun (Samurai is going to have a field day with this)

IMHO, Lexus will start CKD operations soon. Even Volvo has!!! It's easy peasy for any manufacturer.

True but this is Toyota. And we know they love to take their own sweet time but when they do they go all out like they did with the Camry hybrid CKD.