Japanese luxury car brand Lexus has entered the Indian market last year after keeping the domestic customers waiting for pretty long time. However, the brand couldn’t garner much attention in a market where the three German rivals dominate the market. Clearly, wasting precious time has affected the brand’s ambition to draw attention of the buyers. Now, in an attempt to boost the sales figure in India, Lexus is planning localized production of the ES Hybrid.
Currently Lexus imports the ES Hybrid as CBU (Completely Built Unit) from Japan, which makes the car much pricier due to the high tax rate. Compared to that, Mercedes-Benz is constantly increasing the localization of its cars in India that is helping the German brand to sell the luxury cars at competitive pricing. Audi and BMW too are following the same path. Now, taking lesson from its German rival that sits at the pole position of the luxury car segment of Indian market, Lexus is not considering local assembling of the ES Hybrid.
Lexus ES is presently manufactured in two places in the world, which are Kentucky in USA and Kyushu in Japan. The hybrid variant is built in Japan only. Lexus currently sells the ES 300h midsize luxury sedan in India at a price tag of Rs. 59.46 lakh (ex-showroom, New Delhi), which is nearly double the car’s pricing in USA. With local assembling of the car, Lexus ES 300h will certainly be able to achieve competitive pricing in India that would help it in garnering more sales figure.
While the brand is yet to finalize the plan, we can expect the company to come to conclusion soon. Lexus has a plan to retail around 300 units of cars in Indian market every year. It is not sure, how close the brand has reached to the target in 2017, as the Toyota owned luxury car brand has not revealed its sales result.