Lexus mulling possibility of local assembling of its cars to save up to 70% tax that would result in competitive pricing
Premium luxury car brand Lexus is considering local assembling of its India-spec cars. If everything goes well, we might see the automaker set up an assembling plant in the country soon. With local assembling of its products, Lexus will be able to sell the luxury cars at competitive pricing against its rivals.
Currently Lexus sells three different models in the domestic market that are the RX 450h crossover, ES 300h sedan and LX 450d SUV. All these three cars are imported and sold as Completely Built Units (CBU) and thus they are slapped with 100% import duty. In case of importing CKD units and assembling them locally, Lexus will be able to bring down the tax amount by up to 70%, resulting in significantly lower pricing.
Also read: Lexus Will Operate Independently In India
Considering the growing demand of premium luxury cars in Indian market Lexus is eyeing a greater share here. In an attempt to achieve that target, the automaker is focusing on launching new products in the domestic space. It is focusing on bringing more cars in the country powered by electric powertrains. Also, we can see compact models from the brand in future. Apart from that, the Toyota owned luxury car brand is gearing up to expand its dealership as well.
Presently it has dealerships in four major cities across the country. These are New Delhi, Gurgaon, Bangalore and Mumbai. We can expect the brand to launch more dealerships across the country soon. Lexus is emphasising on growing its business here. As part of that strategy, the automaker is restructuring its organisation and that is why the company has formed its domestic operational wing Lexus India, which will operate independently from Toyota.
Meanwhile, Lexus has unveiled its new LS+ concept at the ongoing Tokyo Motor Show that previewed its future flagship sedan and also upcoming advanced autonomous driving technology including Highway Teammate that is expected to debut in 2020.
Source: ET Auto