Lexus, the luxury brand of Japanese auto majors – Toyota have put off their plans for India entry during the current year. This may be due to slowdown in the Indian auto sector or wrong timing but Indian consumers who were eagerly awaiting the arrival of this luxury brand will have to hold their horses for some more time till the company makes known its future plans of entering the Indian luxury sector.
This information was clarified by Sandeep Singh, deputy Managing Director of Toyota Kirloskar Motors who stated that the debut of Lexus was not to be expected in the immediate future citing several reasons for this postponement. For starters, last year’s Union Budget raised import duties on fully built cars into India significantly. This proved to be a major deterrent for Lexus who had planned on bringing in their cars into India in fully built up state. Depreciation of the rupee also added to company woes as it would also prove to be a detriment in importing these luxury vehicles to India at this time.
Other brands such as BMW and Mercedes are also facing tough times in Indian markets and this could have also prompted Lexus to do a rethink on their timing of entering India at a time when the country is in a slowdown mode. For the month of Dec 2012, Toyota India registered a 24% decline in sales.