Lexus' Conservative Face in China

A few days ago, a report from the Nikkei Shimbun made Infiniti once again the focus of attention in the industry. The report said that in 2012 the brand will be put into production in China, where the new headquarters is located. Although the Nissan headquarters and Infiniti responded on the same day respectively, they denied the news of production in China in 2012. However, Nissan would like to see the eagerness of Infiniti made in China.

Seeing here can not help but think of Lexus, in fact, Lexus is the first of three Japanese luxury cars with domestic qualifications. A few years ago, when Lexus had just entered China, Zeng Lintang, then the head of Lexus, said that when Lexus sold 50,000 vehicles in China, Lexus would be made domestically.

However, even today, Lexus has not implemented domestic plans. Last year it sold more than 50,000 vehicles, and Zeng Lintang has also left. Nakajima Kenjima, who replaced Zeng Lintang’s main business in Lexus, still said that Lexus currently has no domestic plans.

It cannot be denied that Infiniti's domestic production seems to be a little faster, but Lexus's hesitation is also known as indecision by the outside world, which also makes the once inexorable Lexus fall into a trough. In 2010, Lexus China sold 53,000 vehicles. As of the end of September this year, Lexus sold only 35,000 vehicles in China.

According to the established plan, Lexus’ sales target in China this year is 60,000 units. At the beginning of his inauguration, Nakajima Kinin also developed a "radical" plan for Lexus. In the next three years, Lexus wants to achieve sales of 100,000 cars in China.

But how can Nakajima Kinren achieve this plan? According to Nakajima Kinin, Lexus is currently focused on strengthening its competitive advantages in terms of products, channels, and services. Among them, the introduction of more small-displacement, entry-level, and tailor-made "long wheelbase" version of the flagship model for the Chinese market is a top priority.

At the time of listing of the CT200h, Nakajima Kinin stated that the CT200h is the first Lexus hybrid car with an affordable price of less than RMB 300,000, which will enable Lexus to promote small-displacement and hybrid vehicles in China. Introduce plans.

The outside world believes that Lexus's most immediate reason for not considering domestically is the distribution of sales profits. Once domestically realized through the formation of a joint venture company, this means that at least 50% of production and sales profits will be transferred to Chinese joint venture partners.

However, Lexus should also take into account that the huge market prospects and cost reduction after domestic production are also completely unmatched by imports. The data shows that in the first three quarters of this year, the market share of Lexus (which accounted for luxury cars) has dropped to 5%, compared to 7.5% last year.