Monday, September 29, 2014
By Manoj Kumawat
Toyota Lexus to be brought through CKD route in Indian car market
Going through the sustainable success enjoyed by luxury cars offered by luxury car makers like Mercedes Benz, Audi and BMW, Japanese car maker Toyota Motors had also revealed its intention of bringing its luxury car Lexus in Indian car market. But now it is reported that car maker is looking on the options of bringing this luxurious brand in Indian car market through CKD route as this will help company to launch this product at competitive price. It would be interested to know that despite of slow growth, luxury cars in Indian car market have succeeded in enjoying the success expected from their launch. Earlier Japanese car maker was supposed to bring Lexus in Indian car market sometimes in 2012 but as an impact of high import duties it has to postpone its plans. But according to recent reports the car maker is making intensive study of tax composition in India and keeping that formation in concern it intends to bring Lexus soon in India.
It would be interested to learn that Indian buyers with high income have scale have played an important role in increasing trend of buying luxurious cars offered by car makers like BMW, Audi and Mercedes Benz all of the them witnessing significant growth during last four years since 2010 to till date. Now following the strategy adopted by these luxurious car makers, Japanese car maker is also going to assemble the parts of Lexus in India. As an impact of this the rate of tax charged by government for importing vehicles would come to half. The car maker has already started the assembly of Camry sedan at its production unit located at Bangalore.
At present Toyota captures 4-5% of car market in Indian car market and once Lexus is launched it will make its entrance in segment of luxurious cars and will compete against all the major German luxurious car makers. Apart from strengthening its position in luxurious car segment the car maker is going to bring a mid-sized sedan in Indian car market to compete against Honda City and others in segment.