While Lexus had an advantage with technology when it came to the Indian market, all the cars came to India via the CBU route. There have bee...
While Lexus had an advantage with technology when it came to the Indian market, all the cars came to India via the CBU route. There have been talks within the industry about Lexus kick-starting local assembly, but every time we asked the company this question, it said that the company was still evaluating the market. Finally, Lexus India has announced that it will start local assembly of its cars here at the company's facility in Bengaluru. The ES 300h will be the first model to be locally assembled in India. With this decision, India becomes Lexus' third vehicle making base outside of Japan and North America.
The setting up of a local assembly unit in India will allow Lexus to price its products attractively and at par with its rivals in India. The company to date was importing all its products in the country as completely built units therefore attracting 100% import duties. But with the kits, expect these duties to go down by almost 70% which means tax levied will be in the 30% to 40% quadrant.
This is a big move for the carmaker in the country as it begins a new decade in the Indian automotive industry. Lexus entered the Indian market in 2017 and brought in a host of hybrid vehicles, which to date none of its competitors can boast of. Lexus will drive on this hybrid path with more cars scheduled to grace Indian shores very soon.
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