Toyota’s luxury car brand, Lexus has decided to postpone its entry in India. The Japanese car maker had planned to launch the brand in 2013 but now have deferred citing various conditions.
Toyota officials feel import duty on fully-built cars is very steep in India. A sharp depreciation of the rupee and not so encouraging economic conditions with uncertainty over its turnaround have further delayed the entry.
Toyota had announced the entry at the 2012 Auto expo and had plans to have separate dealerships for the brand. Lexus brand competes with the likes of Audi, BMW & Mercedes-Benz worldwide. The company markets Luxury sedans, SUVs and hybrid cars.
When launched in India, Lexus will have a separate dealership network and will start with major metro cities in India. Lexus will have to launch products at a very aggressive pricing strategy if It wants to make a dent in the Indian luxury segment. The company may bet on its hybrid portfolio to lure customers.
Toyota India is currently concentrating on the Etios series to strengthen its market share in India. We could expect some news on its entry in 2014 at the next Auto expo.