Lexus helping Toyota lure customers from established luxury car brands?

It's been a little over six months since Lexus, the luxury vehicle division of Toyota, entered India with three models – two SUVs and one sedan. We don't know how many customers, or guests as Lexus would like to address them, the newest automobile brand has garnered in India. The company would not disclose the figure. But what we know is that 80 percent of the "guests" who welcomed Lexus into their garages also own at least one Toyota model.

"These customers were willing to have something in luxury. So, that's why they can't stay only with Toyota," says Akitoshi Takemura, president, Lexus India. This indicates either an expansion, albeit minor, of the luxury car market or weaning away customers from going to established luxury brands like Mercedes-Benz, BMW, Audi.

Takemura says he is not chasing numbers, directly. He is betting on building strong brand equity for Lexus in India which would then do the job of inviting more "guests" into the showrooms. Currently, Lexus has four 'Experience Centres' and four aftersales support centres in India and the number would grow.

Takemura says he doesn't talk sales numbers to dealers and relationship managers but says he will always talk about “How my guest has experienced his ownership. I will check all the log and records, what kind of contact and communication was done among the guests and our relationship managers and how it has been evolving." That sort of focus on brand building is almost an extension of Lexus' chief brand officer and master driver and Toyoda family scion Akio Toyoda's statement, "We don't just transport people, we transport their senses.”

Lexus India president Akitoshi Takemura and vice-president Arun Nair at the launch of  the new hybrid electric SUV, the NX 300h in Mumbai.

On the product side, Lexus is trying to create a space for itself in the Indian luxury vehicle market with striking designs and technology. Unveiling two versions of the NX300h SUV today, Takemura says, "See this brave design. In the SUV segment you will not see this kind of design." And that, Lexus hopes, would attract a "different customer-set' than what it has welcomed in India so far. The NX 300h, when it goes on sale officially from early next year, is expected to sport a price tag of "around" Rs 60 lakh. The price could have been more competitive had the vehicle been assembled or manufactured locally. It is too early for Lexus India and its sales volumes too small to take that route now, but the company is "studying" that option.  

Also read: Lexus launches NX300h in India