Lexus is studying the tax structure of India for starting an assembly plant and might introduce more offerings in the country.

2017 Lexus LX450d Test Drive
The brand entered in India in March this year with a line-up of three products

Toyota has been enjoying remarkable sales figures of its two utility vehicles – Innova Crysta and Fortuner. The biggest epitome of this comes out to be the company’s failure of delivering vehicles to the customers on time. Currently, both the big cars are making the customers wait for around 6 to 10 weeks after the day of booking. Although this sounds pleasant, Toyota has been facing big problems as the capacity of their assembly plant in Bengaluru has touched its limits.

The limit of the company’ first plant, where the Innova Crysta and Fortuner are manufactured, is 1,00,000 units. Since the orders for the cars are much higher, the waiting period is not being reduced. Owing to such predicaments, Toyota Kirloskar Motors has asked the main division of the company, in Japan, to help them with increasing the production capacity somehow and introducing more such vehicles in the market for the customers to have more options.

Whilst all this chaos taking place in Toyota, its partner firm Lexus is planning to set up an assembly facility in India. Lexus made its India debut in March this year with three hybrid models. It has set up four dealerships across the country located in Mumbai, Bengaluru, New Delhi and Gurugram and, reportedly, four service centres may be established in India in the coming days.

A top official from Lexus was quoted saying that they are examining the tax structure of the country, which is quite complicated. Although they consider India as a potential market for their vehicles, the sales of their products are still very slow. For the future, Lexus is planning to expand its dealership reach across Asia and India while currently, the US, Europe and China garner the highest trade for the Japanese automaker.

It remains to be seen how Toyota tackles its shortage of assembly capacity while the demand for their offerings, specifically Innova Crysta and Fortuner, remain high. On the other hand, Lexus announced in September that they are separating their operations from Toyota. Once the company successfully establishes its assembly facility, we may get to see more offerings being introduced in our country.

Lexus India Assembly

– Toyota is running out of production capacity for its utility vehicles Fortuner and Innova Crysta
– Both the cars have 6 to 10 weeks of waiting period
– Lexus is examining the tax structure of India for setting up a assembly plant

2017 Toyota Fortuner Off-Road Experience
Toyota is seeking help from its Japanese division to cope up with the increase in waiting period