Experts believe that the high levels of disposable income in India have facilitated the growth of luxury brands, such as Mercedes-Benz, Audi, Jaguar, BMW, Range Rover and Volvo. Clearly, there is no denying the domination of the German trio (Mercedes-Benz, Audi and BMW) but new brands are entering and Lexus, the luxury brand of Japanese car maker Toyota, could be the next to join the bandwagon. Due to the lack of demand, Toyota, which already has a strong presence in India, decided against bring Lexus in India but now that there is tremendous growth potential, the firm has reversed its decision, reports have claimed.
The car market in India has been going through a rough phase for the past two years with players in the passenger vehicle segment reporting slow growth, low sales and diminishing returns, causing unanimous worry. While the passenger car segment is in doldrums, the luxury vehicle vertical is enjoying a great time in India and more number of players have entered the market.
At present, Lexus has its sales concentrated in the United States of America, which is its largest market in the world. Currently, there are sixteen cars in Lexus’s portfolio including four sedans (IS, GS, ES and LS), three Sports Utility Vehicles (SUVs) (RX, GX and LX), five hybrids (CT Hybrid, GS Hybrid, LS Hybrid, ES Hybrid and RX Hybrid), three performance models (IS F, F/F Sport and LFA) and a convertible (IS C). This is not it for Lexus as the brand plans to launch an entirely new line-up, which will consist of new vehicles, namely LF-LC, RC, RC F and NX. There has been no indication by the firm regarding which cars will make their way to India but logic and reports by analysts suggest that models competing directly with the German trio are sure shot introductions.
Industry experts believe that Toyota’s top class reputation in the Indian market and its large customer base will certain help Lexus’s cause in creating a niche for itself. Also, owners of luxury cars like Mercedes-Benz and BMW will certainly have knowledge about Lexus, something that will work in the brand’s favour. According to sources, many high profile people in India including film stars and sportsmen own Lexus models. Marketing the vehicles is going to be the most important aspect if Toyota is to transmit its success to Lexus. Though at present no definite time frame has been provided by Toyota for the launch of Lexus but it is being said that it will not be long before the same happens.
