Toyota India has decided to postpone the launch of the luxurious Lexus car to beyond 2013. With the company experiencing sales decline, the company plans to defer the car launch against the earlier decision of introducing the Lexus in to the Indian market by 2013.
Sandeep Singh, deputy MD of Toyota’s Indian subsidiary, Toyota Kirloskar Motors, confirmed that the awaited plush car will not make its entry in Indian market anytime soon. ‘It will not be launched in 2013,’’ Singh said pointing to the many hurdles preventing the car’s launch owing to the steep import duty on fully-built cars in India after the figures were raised in the Union Budget last year.
He also stated that, ‘’This is a major setback as far as our plans to introduce Lexus is concerned, currently we plan to only import vehicles and not manufacture them here.’’ A sharp decline in the economic value of rupee is another factor which is a cause of worry for company officials. The plunge in rupee value is a major challenge, which makes it an unfavourable period to import cars.’’
The reason for the company to decrease manufacturing many cars in India is due to the decline in Indian economy and uncertainty over the rebounding of the depreciated economy. Toyota India could have followed the path of successful brands such as BMV and Mercedes to dwell into the Indian luxury market, the tough times have hindered the company to view luxurious cars.
Toyota’s decision to introduce Lexus to India was announced by a senior official based on the events at the Tokyo Motor Show in late 2011. The company considers to separate dealerships in markets where Toyota and Lexus are retailed. The Lexus brand was introduced in 1989 and has stiff competition with BMV, Mercedes Benz and Audi and many other luxurious brands. Lexus cars are manufactured in four plants in Japan and also in Canada and North America.