To cater to the surge in demand for luxury cars in India, Japanese carmaker Lexus plans to increase its market coverage over the next six to eight months. The carmaker is hoping to sell 2 to 3 times more cars in 2022 than what it had sold since 2017 when it launched its vehicles in India.
"We have established ourselves among the general public that had earlier seen the dominance of the luxury German car makers. India is a large country wherein 44 per cent of the luxury car market exists outside the metro cities. We will be tapping the 44 per cent segment through our brand space Meraki. The market coverage will increase from 56 per cent to 80 per cent in the next six to eight months," Naveen Soni, President, Lexus India, told BusinessLine
The automaker aims to grow across tier-2 and tier-3 cities.
It will soon expand its presence to Pune, Kolkata, Ahmedabad, Lucknow, Bhubaneswar, Vijayawada and Coimbatore. In order to increase the customer experience, the carmaker will provide luxury experiences to its guests offering priority access, health and wellness, travel and meal packages
Supply issues
"By the end of this year we will have sold 2 to 3 times the car units we sold in the last five years. The sales in the last seven months have been collectively of what we sold over the last three years," said Soni.
Even as the demand for luxury cars has increased, the carmaker is still coping with supply issues, "There have been issues of supply globally. When we make our vehicles we source parts from various countries. Coronavirus constraints and supply chain disruption have been primary concerns but we are trying to manage the supply," added Soni.
Lexus service points
The company will upgrade the dealerships and operate Lexus service points for consumers in tier-2 and tier-3 cities.
"We want Lexus to be sold and serviced at the doorstep of our guests. We are looking at upgrading Toyota dealerships where we can leverage the dealership and upgrade it with trained manpower. Lexus service points will also be announced soon that would be available for the cars in operation," said Soni.
EV plans
Globally, Lexus has committed to produce battery-operated vehicles by 2035 and has been testing its model UX with complete electric battery configuration.
"We are studying the market and believe that the future of the mobility space is electrified and not electric and will have all electrified technology. 97 per cent of our vehicles are hybrid electric and the consumers will choose from the vehicles," Soni added.