Lexus planning to setup 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 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