Toyota Lexus looking to set up assembly plant in India

Toyota Lexus looking to set up assembly plant in India

Toyota’s luxury brand Lexus is exploring the possibility of setting up an assembly plant in India. Hit by the higher cess on hybrid vehicles and steep import duty, the brand is eyeing local assembly as a viable option. As against import duty of over 100%, assembled vehicles attract levies of only about 30-40%. The company entered India with three hybrid vehicles in early 2017 and if it actually goes ahead with a local assembly plant, India will be only its third vehicle making base outside of Japan and North America. Lexus’s global rivals, namely Mercedes Benz, BMW and Audi, already have local manufacturing bases, along with Swedish car maker Volvo.