Lexus Begins Indian Journey

Over the years, the word ‘Lexus’ in India is most commonly associated with the Toyota Land Cruiser. Quite a few Indians would have remembered seeing the word ‘Lexus’ or the L logo encircled on a Toyota Land Cruiser. Well, not many people in India know that Lexus is the luxury division of Japanese car giant Toyota. Toyota began work in 1983, on developing a new premium sedan code-named F1. In 1989 this led to the inception of the first Lexus product – the Lexus LS. Back in 2014 there was talk about Lexus entering India, however this did not materialize as the import duty and other taxes were too high. The wait is finally over! Lexus has entered India with a 3-model lineup which includes the RX 450h, ES 300h, LX 450d.

   The Indian luxury car market is dominated by the German auto giants – Mercedes-Benz, BMW, Audi with Mercedes-Benz leading the way. There are other players as well such as Jaguar Land Rover and Volvo. The luxury segment in the Indian market has been one where there is cut throat competition where car manufacturers are continuously pushing the boundaries of excellence with respect to technology, comfort, driving pleasure and last but not the least luxury. In such a competitive market, it is very difficult for any player to be it an existing or new to sustain and make a lasting impression. On the other hand, the Indian market is a very exciting prospect for luxury car buyers looking to have a slice of the market, because the Indian car buyer is becoming younger and at the same time more affluent. In the Indian scenario, Lexus’ competitors have been on the market for the considerably longer period this is a major advantage for the competition as they know exactly what the Indian customer is looking for. The Indian customers have been accustomed to cars which deliver both great luxuries and at the same time are great driving machines with a good balance of leisure and enthusiasm. Whereas Lexus is more inclined towards providing with comfort and efficiency. In the Indian luxury segment, there is a great demand for diesel cars, as most of the units sold are diesel powered; Lexus has a very limited range of diesel engines and the cars which are going to be offered here are going to be hybrids. Most of the German cars, JLR etc. are locally assembled, manufactured, Whereas Lexus will initially sell their cars only as a full import unit, making the cars considerably expensive. The RX450h is a crossover SUV powered by a 3.5L V6 direct injection petrol engine paired to an electric motor producing 305 bhp. The ES300h is the flagship sedan of Lexus-powered by a 2.5L petrol engine paired to an electric motor generating about 200 bhp.

  Toyota has never really intended to create a cash cow out of Lexus but to build and enhance its brand image, We shall have to wait and watch how the Indian journey of Lexus unfolds.