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Old 25th October 2017, 15:19   #1
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Default Lexus planning to set up assembly unit in India

Lexus made its debut in the Indian market back in March 2017. Now, the Japanese car maker is evaluating the possibility of setting up an assembly plant in the country. Lexus currently has manufacturing units in Japan and North America.

Lexus planning to set up assembly unit in India-lexus.jpg

Lexus entered the Indian market with the launch of three products - RX 450h, ES 300h, and LX 450d. All three models are imported as completely built units (CBUs) which attract a 100% import duty. In comparison, 30-40% tax is levied on cars assembled in India. Thus, local assembly should allow Lexus to offer products at a more competitive price.

Last month, Lexus announced an organizational restructuring of its India operations which lead to the creation of Lexus India which will operate independent of its sister brand - Toyota. The brand currently has dealerships in four cities which include New Delhi, Gurgaon, Mumbai and Bangalore. According to the media report, Lexus plans to launch more models as well as expand its dealer network in India.

Source: Economic Times

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Old 25th October 2017, 15:25   #2
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Default re: Lexus planning to set up assembly unit in India

Great news! As far as their lineup is concerned, the only thing plaguing their cars was the exorbitant price tag. Maybe the bashing on the official review thread worked.

However, difficult times ahead for hybrids. While charging taxes on CBUs is justified (no job opportunities are created) the government really needs to do something about their crappy hybrid policy.

Don't want to see a Lexus end up like the Toyota Camry Hybrid.

Will be interesting to see how the CKDs stack up when it comes to price. I still expect their lineup to command a slight premium considering toyota's pricing strategy, but not as much as it did before.

Finally, a reliable alternative to the Europeans?

Last edited by vishy76 : 25th October 2017 at 15:28.
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Old 25th October 2017, 19:41   #3
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Strategically I wonder what Toyota managements game plan is, on one hand the Camry hybrid assembly is stopped, But they are planning to start brand Lexus local assembly, the es300 h uses the same power train as the Camry hybrid. Could they use the existing facility which was earlier used for Camry to assemble the Lexus models and gain some economic leverage ? All in all same taxes would be applicable for the Lexus Kits as were applicable on the Camry. The Camry kit comes from Thailand.

I wonder if they have temporarily halted Camry hybrid assembly to divert 100 percent resources towards assembly of Lexus cars.

It should result in price benefits for the end customer nevertheless. If Lexus comes up in the market with es300h at the price point for say 520d luxury line it can create some series headache for all the Germans.

The Rx 450h is well over one crore now, if local assembly brings the cost down to Q5 X5 levels with combined power output of 300 plus horses it becomes a very tempting proposition.
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Old 26th October 2017, 00:42   #4
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Default Re: Lexus planning to set up assembly unit in India

I think the decision to stop manufacturing the Camry Hybrid might involve

a) GST
b) Lexus

The engine used in the Camry hybrid is the same engine that is used in the Lexus lineup. By offering it only with the lexus range and not the Camry, they will create a clear demarcation in their product offerings. If they can price the ES in between the 3 and the 5 series (it is about the same price as the 3 series in north america), it will eat a lot of potential sales from the germans. The IS hybrid is awesome too but at about the same price as the ES, it might not attract a lot of Indian "seths" who prefer the back seat and practicality offered by the bigger sedans.

If they're going to use the 4 cylinder hybrid in India, they might as well launch the NX too. It will be interesting to see the NX go up against the Q3, X1, GLA.

Now, if they can launch the RX at the price of the Q5, GLC,X3 or slightly higher, I think we have a fight on our hands. The RX is head and shoulders above the germans when it comes to luxury.

Hopefully someone from Lexus will read our discussions....
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Old 26th October 2017, 06:47   #5
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Default Re: Lexus India to operate independent of Toyota

Lexus Considering India Assembly Unit

I was expecting this, there is no way they can do any meaningful numbers on most of their model range without assembling here, so it's more of when and where. Their First plant where UV/SUV are produced is already fully utilized. Maybe they can come up with a new plant where premium Lexus and Large SUV from Toyota like LC Prado and 200 are assembled.

“The taxes are so hard, so we are now studying,“ Lexus president Yoshihiro Sawa said. “I don't know when (the plant will be set up), but we are studying,“ he told ETAuto at Tokyo Motor Show.

http://epaperbeta.timesofindia.com/A...26102017008005
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Old 26th October 2017, 18:22   #6
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Default Re: Lexus planning to set up assembly unit in India

Am all for locally building products, so bring it on, I say!

Lexus can definitely carve out its own space in the luxury segment. Fact is, none of the Germans can hold a candle to Toyota / Lexus in terms of long-term reliability. Toyota's after-sales is consistently awesome too.

Two things work against Lexus; the jaw-dropping pricing can be taken care of via CKD. I hate their new styling, but well, looks are subjective. I know some people who love Lexus' designs.

Quote:
Originally Posted by Sparks View Post
Could they use the existing facility which was earlier used for Camry to assemble the Lexus models and gain some economic leverage ?
Easy peasy, as the Camry also had high import content.
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Old 31st October 2017, 00:11   #7
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Quote:
Originally Posted by HKap View Post

If they're going to use the 4 cylinder hybrid in India, they might as well launch the NX too. It will be interesting to see the NX go up against the Q3, X1, GLA.



Hopefully someone from Lexus will read our discussions....

As always they do one thing right and one thing wrong.....

The NX300h is being launched in November but its going to be priced at an exshowroom price of 75L. Add the CBU registration charges and insurance and you're looking at something close to 90L-1Cr. Imagine the dent that this car can make to the sales of the rubbish that the germans are dishing out in the form of the Q3 and the GLA, if it's priced around 40L.

https://www.autocarindia.com/car-new...17-2017-406396

Quote:
Originally Posted by GTO View Post
I hate their new styling, but well, looks are subjective. I know some people who love Lexus' designs.

I used to have the exact same opinion as you about the whole spindle grill thing. However, it doesn't look as bad in person. If anything it grows on you and is acceptable. I think the RX looks really nice in person and so does the IS.

Last edited by ajmat : 31st October 2017 at 09:10.
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