Lexus India launch slated for 2017

Toyota has finally decided to bring its luxury car brand - Lexus, to the Indian market. The Japanese automaker is reported to have confirmed that the Lexus brand will make its debut in the country in 2017. Since June 2016, Toyota has been importing models like the ES 300h and the LX 450d into India for homologation, pointing towards a nearing official launch.

This isn’t the first time that Toyota has made public its plans to bring the Lexus brand to India. Back in 2011, the company had confirmed that the Lexus brand will be launched in 2013. But the 2013-14 Union Budget released by the Government of India resulted in a hike in customs duties to 100% for fully imported cars. Since Toyota was planning to take the CBU route for Lexus cars, it would have suffered a huge price disadvantage due to this hike in customs duties, especially in comparison to its German rivals, who are assembling many of their cars locally. This prompted the Japanese automaker to shelve plans for the introduction of Lexus in India.

However, the company now believes that there is a potential for hybrid cars in the Indian market. Hybrid vehicles attract a lower customs duty on import. Additionally, the government's FAME India scheme warrants a concession of up to Rs. 1.38 lakh on all hybrid cars larger than 4-meters in length. This will help Lexus to tag its cars at realistic prices.

Though the company hasn’t announced the list of models that are likely to be launched in India, earlier import records suggest that the first two Lexus models in India would be the ES 300h hybrid sedan and the LX 450d SUV.

Source: Autocar India