[Foxbat]

Originally Posted by libranof1987

Lexus will be bringing in these vehicles as CBU (Completely Built Unit), which are taxed 125%. So, naturally just the import duty will be a significant factor in the ex-showroom price.

Secondly, as prices of everything from the Hondas (Civic, CRV) to the BMWs have shown, prices in the US or even Middle East absolutely can't be used as a yardstick for how they are priced in India.

Yes I understand that perfectly but then the price should have been 2.25x of the US price roughly, why is it 2x for one and 3x for the other ?

[libranof1987]

Originally Posted by Foxbat

Yes I understand that perfectly but then the price should have been 2.25x of the US price roughly, why is it 2x for one and 3x for the other ?

I think every time these guys bring in something new in our country, they add a line item in the invoice called "Aspirational Value".

And the number goes higher as the product becomes fancier.

I doubt there's a sensible logic between the prices of the car in the US and here. Most likely, they've benchmarked each car on what they *think* is its competition and priced it making sure the AV component is a generous figure.

[pgsagar]

A petrol sedan with CVT at this price? And up against Germans? I very much doubt its success in India. Novelty factor may see a few numbers. Thereafter, it may adorn star hotels porticos as high end taxi more than individual homes. People may buy L/Cruiser SUVs upwards of 1 cr. But big petrol sedans fall in no man's land. Even Germans petrol sedans had limited success vis-a-vis diesels.

Lastly, somehow Lexus, Acura, Infiniti look like glorified Toyotas, Hondas and Nissans. Heck, they even have models with just badges swapped, apparently.

[Turbanator]

The Lexus ES300h costs $41,820 in the US which is about Rs. 27,34,818

Its priced at Rs. 55.27L or about 2.02X the US Price.

Lexus RX 450h costs $53,035 in the US which is about Rs. 34,69,151.

Its priced at Rs. 1.07 Crore or about 3.08X the US Price.

Lexus will be bringing in these vehicles as CBU (Completely Built Unit), which are taxed 125%

why is it 2x for one and 3x for the other ?

Yes, there will be a difference as we have lower customs duties on CBU with 4 cylinders ( I believe less than 2500 CC or so ) due to which ES has a lower factor. That's the reason Porsche was able to price newer 718 - Cayman/ Boxter at lower prices than outgoing ones which had 6 cylinders. Similarly BMW imported lots of 320 & 520 CBU as these 4 cylinders qualified for lower duties.

[br_876]

Originally Posted by Foxbat

How does Lexus price its vehicles in India? Is there some conversion rule?

The Lexus ES300h costs $41,820 in the US which is about Rs. 27,34,818

http://www.lexus.com/models/ES-hybrid

Its priced at Rs. 55.27L or about 2.02X the US Price.

Lexus RX 450h costs $53,035 in the US which is about Rs. 34,69,151.

http://www.lexus.com/models/RX-hybrid

Its priced at Rs. 1.07 Crore or about 3.08X the US Price.

Am I missing some thing here? Is the import duty for SUVs higher?

Well, I think you are making calculations for the base model. The one coming to India has all the bells and whistles like premium sound, LED headlights, and ventilated seats. Spec up the US model to these features and the price comes to $53k or to around 33 lakhs. So, it is a 60% increase to 55 lakhs and I don't think it is too much for a CBU.

[stanjohn123]

Originally Posted by racer_ash

In simple terms, it is nothing more than a glorified Camry Hybrid and not worth the extra moolah IMHO!

Lexus is nothing like a Toyota. The luxury and service you get from a Lexus is on another level. Well atleast that was the experience I got from my Lexus in the ME. http://www.wheelnmotor.in/blog/2010-...is-300-review/

Yes in India it is truly absurd pricing. But blame our govt for it.

[The Brutailer]

Originally Posted by stanjohn123

Lexus is nothing like a Toyota. The luxury and service you get from a Lexus is on another level. Well atleast that was the experience I got from my Lexus in the ME. http://www.wheelnmotor.in/blog/2010-...is-300-review/

Firstly this review you mentioned above has compared Lexus with a Corolla. Absolutely absurd.

Secondly, Lexus works abroad because it's VFM. In India though? Definitely not.

Compare it with a Mercedes C Class and that itself can beat this Lexus. E Class is in a different class of it's own even though both are priced similarly.

If Camry Hybrid was not offered in India, this could've been a better deal. But it is offered and yes this Lexus is a glorified Camry Hybrid.

[petrolveins]

http://www.business-standard.com/art...2401433_1.html

Timely interview. The very fact the he mentions that Lexus is not an expensive toyota in itself says that this comparison is loud and clear in customers mind and the management is aware of it. It pays to heed to majority opinion sometimes and then evaluate individually to form one's own opinion.

I think Lexus' intention is to provide suitable cars for its OWN toyota customers (say a Camry owner) to graduate within its family rather going over to Germans. So, they may not really go after sales initially.

Initial days the Lexus will have 'that' exclusivity factor as so far no one saw them on Indian roads but looks different with its 'in-your-face' front looks.

As things stand now, personally, I would choose the new E class over the Lexus offering.

It will take a decade for it to establish by which time the luxury market in India would also gather enough numbers for the companies to offer better value for money.

[racer_ash]

Originally Posted by stanjohn123

Lexus is nothing like a Toyota. The luxury and service you get from a Lexus is on another level. Well atleast that was the experience I got from my Lexus in the ME. http://www.wheelnmotor.in/blog/2010-...is-300-review/

Yes in India it is truly absurd pricing. But blame our govt for it.

Woah!! Hold your horses buddy. Please lets us first agree to disagree and not force each others opinion down one's throat. Please read my post carefully and I am sure you will see me praising the luxury quotient of the Lexus. But that doesn't negate the fact that the 300h with the current pricing is competing with the likes of the E series when it is more or less beaten hollow even by the C everywhere except in service and space.

Do you think for a moment that Lexus or Toyota will reduce prices once the Lexus is localised? How many cars have you seen in the nations history that have their prices reduced significantly once localization happens (we are talking around 40% reduction here).

With regards to the review, the lesser said the better. I do not wish to comment on that. It tallks of a Lexus with a V6 motor that has better acceleration than the one launched here. And I definitely dont expect Indian customers to get treated like 7 star guests like the way customers are being treated in Kuwait. Atleast not in the near future.

[SmartCat]

Originally Posted by The Brutailer

What's with the CVT transmission at such a high cost?

Originally Posted by racer_ash

The CVT also has the same issues that all conventional CVTs have i.e. rubber band effect; though Lexus has managed to keep it at a minimum.

Originally Posted by pgsagar

A petrol sedan with CVT at this price?

Since the whole idea of a hybrid is fuel economy, CVT makes a lot of sense in such a car. There are only a handful of hybrids that are NOT equipped with CVT.

Yeah, so we know that CVT in a petrol car (non-hybrid) has this rubber-band effect. But in a hybrid, the battery supplies power to the wheels when the accelerator is floored, and lets the (petrol engine + CVT) combo catch up. Battery power eliminates the only significant disadvantage of a CVT.

That's in theory though, actual results might vary from one hybrid car to another! Read up the Team-BHP reviews of Toyota Camry Hybrid

A gentle dab and the petrol engine comes alive with a throaty growl.
The low-end torque is superb. The electric motor + petrol engine combine to give you instantaneous response. You can reach triple digit speeds in no time, this is when you really feel the 202 BHP on tap.

and Honda Accord Hybrid (Driven: Honda Accord Hybrid)

The acceleration in combined output is really strong and the low-end & mid-range feel punchy. It’s at the low-end, where the electric motor's extra torque helps in an almost instant power delivery.

[invidious]

I remember doing a case study in business school and please correct me if I have missed out on the facts -

When Toyota launched the Lexus brand, it was scoffed at. But in those days, it undercut its German rivals by a significant amount - I think it was either $15,000 or $20,000 while offering the same features. This led to its success.


Now that the brand is well established globally, they don't need to undercut their German rivals. In India, I doubt even they think they call sell their CBUs in large numbers - probably some long term game plan to establish the brand presence here before launching models in the affordable space.

As a WTO player, can India continue to impose the 125% duty or does it have to gradually reduce the rate?

[norhog]

I admit that I am not the target buyer because as of now I do not have the kind of money to throw on this car.
Having said that as an automobile enthusiast the look never looked good to me, never in photos and never in real life.
Have seen quite a few of them. The front is a copy of Audi gotee and those awkward angular lines to differentiate it from that. The rear tail lights are a clear copy of the BMWs with the red ridge on the lights curving upwards.
It definitely is a technically sound product but looks are just ghastly.

[Durango Dude]

Instead of bringing in the 'lame duck' sedan they should have got this here first to add some Wow factor! The full fat Lexus LS 460.

[Raja]

Originally Posted by Durango Dude

Instead of bringing in the 'lame duck' sedan they should have got this here first to add some Wow factor! The full fat Lexus LS 460.

The LS 460 has been superseded by the LS 500
This should be coming to India after it is introduced around the rest of the world later this year.

[extreme_torque]

People said the same thing when Qualis was launched. I am sure people in India want a luxury sedan that they can drive without worrying when is it going to break down or when something is going to stop working. Give it time and people will start appreciating the attributes of the Lexus brand. Not for nothing they are the largest selling luxury car brand in USA.