Toyota to roll out Lexus line by Q1 2008

Toyota Motors Philippines Inc. (TMP) is getting ready to roll its Lexus line of luxury cars by the first quarter of 2009 as it aims to establish a premium foothold in the local luxury vehicle market.

Alfred Ty, vice-chairman of TMP, said the group is dead set on putting up the first Lexus showroom in the Philippines in spite of the ongoing sub-prime crisis in the US, the economic slowdown in the country and soaring prices of oil.

“If everything goes on schedule, we hope to start selling units in the first quarter of next year,” Ty said   

The Lexus showroom which will house the brand’s internal offices, stockyard service, and service center,  will rise on a property owned by the Metrobank Group of Companies in the Bonifacio Global City.

Ty said the units are likely to be priced in a range of P4 million to P8 million each.

TMP has formed a P1 billion company, Lexus Manila Inc., to serve as the corporate vehicle for its premium line of luxury vehicles. 

TMP is hoping to capture a wider audience target with the debut of Lexus sedans L 460, GS 450, ES 350, IS 2350 and LX 570 which will be imported from Japan.

The Lexus line of luxury vehicles was started in 1989 to compete with other luxury brands including Europe’s Audi, BMW, Jaguar, Mercedes-Benz, Porsche, and Volvo, the American Cadillac and Lincoln, and Japanese brands Acura and Infiniti

Before the first Lexus sedan premiered at the 1989 Detroit Motor Show, Toyota engineers spent five years in secret development, costing billions of dollars and involving over 150 prototypes built for a testing process.

Over the years, Lexus has developed a complete portfolio of vehicles that covers a significant spread of the upscale segment.  It has likewise earned a reputation for quality and customer service.

 In the US the brand continually ranks at the top of owner satisfaction and reliability surveys.

German carmakers have long dominated sales of high-end cars in the country  but now face growing competition from Japanese carmakers seeking to boost their share of the lucrative market.

In a country where Accords and Camrys are considered quite luxurious, TMP has a long way to go to expand Lexus to match the success of European luxury car manufacturer BMW and German automobile giant Mercedes Benz in the upscale  segment, according to industry observers.