Toyota has launched some of the most high quality cars around the globe, the company is still unsure about the launch of the stunning looking Lexus in Indian market any time soon. The company might reveal the car in India by 2013, but the company is not ready to launch the car in the country for more than one year.
In India Toyota Kirloskar Motor will manufacture cars centered on smaller MPV’s and SUV’s and is also developing new variants for the Etios brands by 2014-2015. The company is confident of making higher profits with MPV’s and SUV’s. Toyota will expand their cars units to semi-urban areas and smaller towns, which is gaining popularity in these areas. The new UV may hinder sales of a more successful model Innova, but the company is not too concerned because the sale hindrance might be only 5-10%.
Toyota has announced that there will not be production of any new car for the next three years. The company is now strongly focusing on developing the Toyota Etios twin cars. The company also stressed upon not releasing the Lexus brand for more than two years.
The company earlier stated that they would introduce the Lexus brand in India, but has later changed their minds because of the increase in customs duty of luxury vehicles in the last financial year and also the depleting economic value of Indian currency.
Mr. Sandeep Singh, deputy managing director for marketing said ‘’ we were keen to introduce the Lexus brand to India, but the decision was put on hold because of higher custom duty and depreciating Indian rupee.’’ He also said that the Lexus brand will not operate in the country for the next two years.
Launching Lexus car will make CBU’s turn their backs on launch because of the high cost of constructing luxury vehicles, with other luxury vehicles pushing their entry limit into the market. The company has also postponed the launch of the amazing looking Prius for similar higher customs duty reasons.
The company is also keen on enhancing their dealer networks across the country. They have increased their dealer network to 195, which will soon hit the 200 mark at the end of this year with an additional 30 by the end of March 2013. The company did not meet the required profit sales during November this year, but there was good sales profit between January to November 2012 at 161,000 units which is expected to cross the 170,000 to 172,000 mark by the end of next year.
Toyota cars have received good profit in India during the January to November 2012 period. Toyota cars are very popular in India, which can be observed by the number of Toyota cars running on Indian roads. It may be a wise decision of the company to focus on the already existing Toyota cars and upgrade their standards. This way the company can make profits on the present cars to a large extent than focus on introducing new cars to India.
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Tagged: Toyota Etios, Toyota Lexus
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