Lexus lowers sales target for second time

MANILA, Philippines - Luxury brand Lexus Manila Inc. has lowered its sales target for the second time this year in anticipation of a slower demand given the fluctuations in the exchange rate and the increasing price of fuel, a top official said.

In an interview, Lexus president Daniel M. Isla said that from an initial target of 300 units for their first year, they have revised it to 200 and then lowered it further to 172 units.

“Oil prices are unfavorable right now and it is creating a negative perception,” Isla said in an interview. “Second quarter is more critical and challenging,” he added.

Isla reported that their sales have reached 79 units with the sports utility vehicle as the best seller.

He likewise announced that Lexus will be coming out with a new model a sports car worth P4 million. He said the model will come out in the third quarter.

“We are confident that the luxury market will still be there. The high end market is only slightly affected (by the financial crisis) and not severely,” Isla said. “The rich are somewhat insulated (from the effects of the crisis),” he added.

Lexus already has five models in the country priced between P2.9 million to P8 million. Lexus is looking at going head to head with Mercedes Benz S-Class.

“Filipinos will now be afforded the opportunity to see and experience the luxury that only Lexus brand provides. Lexus will be offered in five different models namely LS460L, GS460, ES350, IS300 and LX570,” Isla explained.

Isla said Lexus is looking at getting a substantial share of the luxury market which makes up 1.4 percent of the total auto industry.

He said the luxury market is not expected to get smaller even if demand for other vehicles declined. In fact, he said during the 1997 Asian financial crisis the demand did not move significantly.

Lexus Manila Inc. is a separate entity from Toyota although Toyota Motor Philippines owns 75 percent of the firm while the remaining 25 percent is owned by Mitsui.