Lexus India looks to break into top-3 APAC markets by 2025
1 min read . Updated: 06 Feb 2023, 01:41 AM IST
PremiumAfter a 76% annual increase in sales in 2022, the Toyota Motor Corp subsidiary is now aiming to double its sales in the country this year
New Delhi: Luxury carmaker Lexus expects India to become its biggest market in Asia Pacific excluding China and Japan by 2025, a senior company executive said. After a 76% annual increase in sales in 2022, the Toyota Motor Corp subsidiary is now aiming to double its sales in the country this year.Lexus, which plays in a niche segment of the Indian luxury car market, saw a three-fold increase in the new orders it received for its vehicles, Naveen Soni, president, Lexus India said in an interview.
“One of the things that constrained our growth beyond the 76% increase that we saw is the supply chain constraints we had to face. Last year, we did have challenges in terms of semiconductor supplies and geopolitical issues, which impacted the supplies of vehicles for the customer. But in terms of bookings and business generation, we saw a three-times growth despite the long waiting periods, which gives us confidence that our customers are willing to wait and stay with the brand. So, from that point of view, we are trying to improve our allocation to the country. If that happens, there will be more than a 100% growth in business this year, because demand-wise, I’m confident that we have reached a tipping point and the situation will only improve from this point on", Soni said.
He added, “If this happens, then our position globally, in the APAC region becomes stronger. Our ambition and intention is to be the top Lexus market in this region, excluding China and Japan, by 2025".
The luxury car market in Japan and China are respectively nearly 5-6 and 15-20 times bigger than India. Luxury car sales account for only 1-1.5% of total passenger vehicle sales in the country.
“If we’re able to do that, then a lot of resources can be channelized to India because that’ll given the parent company confidence and visibility to prioritize this market. I’m confident that with the kind of growth momentum and pending orders we have, it’s only a matter of time we will achieve this milestone", Soni said. India is currently among the top 10 markets for Lexus in the APAC region.
