After Lexus' slow start in Japan, Toyota has announced plans to introduce India to the premium brand within the next two years. To that end, India's Economic Times reports that the flagship Lexus LS sedan and LX SUV will lead the way, followed closely by the RX CUV. Toyota is investing heavily, planning stand-alone Lexus dealerships so that Lexus can "operate from a separate exclusive entity to maintain its niche brand value." As it has in the U.S., Toyota will align Lexus to compete against the usual (German) suspects: BMW, Audi, Mercedes and Porsche. Given the country's burgeoning nouveau riche class, India appears to be a great candidate for a brand with no "real" provenance or heritage. If Tata expands Jaguar/Land Rover distribution to India– and why wouldn't they?– the great tiger will be the scene of some interesting luxury car wars over the next decade.
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Since there are very few of the Toyota counterparts in India (Camry, etc) this might work. Well, provided Lexus doesn’t price itself with the German players…
Porsche?
How in the hell do they plan for Lexus to compete with Porsche?
Well, since their attempt to market Lexus in Japan has been a self-admitted failure, I guess India is their fall-back position. Maybe tarted-up Camrys and 4Runners will be a winning combination.
Lexus in Japan a failure? Talk about a sensationalist headline if I ever seen one. Lexus in Japan is doing quite well, sales are close to that of BMW and Benz which have been in the Japanese market a lot longer than Lexus.
People will keep trotting out the Lexus is a failure in Japan myth for a few more months I am sure, despite the inaccuracies of that. So I guess I’ll just keep trying to add perspective every time I see it. Maybe I should just type it in Word and cut and paste.
Lexus in Japan sells close to Toyota’s real goals of 40K, not the 60K that Toyota once envisioned, but quickly revised. 60K is the mythical number that people keep comparing the results to. It just is not the real goal, and has not been considered so for a very long time.
After 2 years, Lexus only trails BMW in Japan. They are slightly outselling Mercedes, and demolishing Audi. And they are doing it with just 4 models, one of which is the aging SC.
As for this jump into India, it is a no brainer. Eevry market they hit other than the middle of Europe is a hit for them.
Just exactly how may years do they have to be around before they have “heritage” or “provenance?” I mean, really, is there a number? 30, 40, 90?
cretinx: Porsche? How in the hell do they plan for Lexus to compete with Porsche?
The SC430 is not much competition for Porsche’s sports cars, although many 911s are in actuality driven no differently than the SC430 and might as well be SC-style boulevardiers.
The real competition between Lexus and Porsche will be between the Porsche Cayenne and Lexus’s SUVs and between Porsche’s new 4-door sport sedan and Lexus’s GS-series.