Toyota to launch Lexus in India by 2013

Lexus

Toyota Kirloskar Motor is set to drive its luxury brand Lexus into the Indian market by 2013, spurred by the relatively better demand growth for luxury cars in the domestic auto market.

Mr Hiroshi Nakagawa, the company's Managing Director, confirmed the launch of Lexus range of sedans in the country by 2013, but refused to provide more details on the models that will be first introduced.

“Each of the models is being carefully studied. A decision on which model to be launched first is yet to be concluded,” he told media persons on the sidelines of a function here on Wednesday.

Lexus, launched in Japan in 1989, today competes with BMW, Mercedes and Audi AG globally. Bucking the slowdown trend, the luxury car segment in India is expected to clock sales of 20,000 units this year against 15,000 last year.

Localisation

Mr Nakagawa said at present 70 per cent of the components for its Etios brand is being sourced locally, the rest being imported from Japan.

In an effort to offset the negative impact of currency fluctuations, the company is in the process of increasing local sourcing to 90 per cent within a year. As part of this strategy, it is setting up an engine and transmission units in Karnataka.

He said the company was also set to commence export of Etios and its hatchback version Etios Liva to South Africa from March 2012. “We are looking at exporting 20,000 units annually,” he said.

Although the Indian auto market has been hit by the economic slowdown, stiff interest rates, inflation and spiralling crude prices, Toyota Kirloskar has been able to increase its market share from 3 per cent to 6 per cent this year. “We are likely to end the year with sales of about 1,30,000 units,” Mr Nakagawa said.

Source: The Hindu Business Line