Quality and customer satisfaction drive rising sales: Lexus India president

The Japanese luxury brand grew by 22 percent last year, with the ES 300h sedan driving growth.

Published On Jan 28, 2025 11:53:00 AM

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<img src= "http://lnkiy.in/Lexus_ES_300h_sedan_Lexus_India_President_Hikaru_Ikeuchi" alt="ES 300h">

Lexus India says it is experiencing steady sales growth, a trend that looks set to continue in 2025. Hikaru Ikeuchi, Lexus India president, credited the rise in sales to the brand's focus on quality and customer satisfaction in an interview with Autocar India. He also pointed out that the growing demand for luxury cars is a sign of the changing customer landscape, where increasing household incomes are fueling industry growth.

“I’m surprised by the year-on-year growth here. Last year, we saw a 22 percent increase in sales compared to 2023, and this growth is continuing in 2025,” Ikeuchi said. He also highlighted that the ES 300h sedan plays a major role in driving these numbers, contributing over 50 percent of Lexus’ overall sales. Lexus, however, did not share its sales numbers, but industry sources reveal that it is in the region of 2,800 cars per year, which ranks below all the other luxury car makers in the country.

Customers love hybrids

Currently, 90 percent of Lexus models sold in India are hybrids, with the LX 500d SUV being the only exception. He explained that customers appreciate hybrid vehicles for their fuel efficiency and advanced technology. "For those concerned about the longevity of hybrids, we offer the highest warranty in the luxury segment – 8 years or 1,60,000 kilometres," he added.

CKD plans

Since 2020, Lexus has been assembling the ES 300h sedan in India via the CKD (Completely Knocked Down) route. Ikeuchi noted that the brand’s commitment to Japanese craftsmanship and the time required for precision in production are key reasons why it hasn’t gone fully CKD for all models yet. When asked if the NX 350h could be assembled locally, he said, "There are plans for a second model in the future, but it was too early to comment on specifics, and the company is still observing the market to evaluate which model it could be."

Luxury van segment is trending

Another notable model in its line-up is the Lexus LM van, a luxury people-mover aimed at high-net-worth individuals. Ikeuchi believes this type of vehicle is gaining popularity in India as customers seek more privacy and exclusivity.

Lexus to go all-electric

It has ambitious plans for electrification and has announced that it will fully transition to become a BEV (battery electric vehicle)-only brand by 2035. Ikeuchi emphasized the importance of carbon reduction, saying, “Carbon is our enemy. Lexus is preparing for this transition with a multi-path approach that includes new hybrid and electric vehicles, as well as hydrogen-powered models.” However, whether a solid-state battery powertrain was headed to India could not be ascertained.

As Lexus continues to grow in India, Ikeuchi stressed that the brand’s focus on customer experience sets it apart from competitors. “We are committed to providing the best experience, from purchasing the car to after-sales service,” he concluded.

WITH INPUTS FROM UDAY SINGH

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