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Lexus Sales in China

2011 Lexus LS 600hL

There’s a very interesting Bloomberg article on Lexus sales in China — here’s an excerpt:

Even after China’s import duties and higher taxes on luxury cars, Lexus currently earns more per car in the world’s largest auto market, said Karl Schlicht, head of the marque’s global product and marketing division, citing a weaker dollar. Premium pricing in China and the higher incentive spending in the U.S. are also factors, analysts said.

Lexus, the top-selling luxury-car brand in the U.S. since 2000, trails behind rivals in China, selling about 20 percent of luxury leader Volkswagen AG’s Audi brand and a third of Daimler AG’s Mercedes-Benz and Bayerische Motoren Werke AG’s deliveries this year.

For a Lexus GX460 sport-utility vehicle, which starts at 1.16 million yuan ($174,000) in China, Toyota charges a premium of almost $70,000 after taxes, Lin said. The same vehicle has a base price of $52,345 in the U.S.

The Lexus LS600hL, the brand’s flagship hybrid sedan, has a base price of 2.07 million yuan ($311,000) in China, compared with $110,000 in the U.S.

Just to put things in perspective, the premium price paid by Chinese consumers isn’t limited to Lexus — another example given is the Rolls Royce Phantom, which sells in China for 6.6 million yuan ($990,000), compared to the U.S. starting price of $380,000 — and it’s due entirely to the exceptional import & consumption taxes set by the Chinese government.

[Source: Bloomberg]

  • W
  • December 6, 2010
Wow! That's a lot of money. I also heard in China the license fees are high as well.
  • J
  • December 6, 2010
those are some crazy taxes!!!
Go to the Philippines and other Asian markets that are still relatively new to foreign imports, and the prices can be much higher. Funny thing... I don't think Lexus vehicles have ever been 3x USA's in terms of pricing - 2x yes, but not 3x, even after the 100% tariffs and some other taxes. Imagine if that American 100% tariffs on Japanese luxury imports actually went through in the mid-90s, the worst years for Lexus; those were the years in which Lexus nearly backed out of the American market.
  • B
  • December 6, 2010
The Chinese gubmint can extort with the best of 'em! Using taxes to keep the trade imbalance, while ripping off their own people Now that's impressive! BD
  • P
  • December 7, 2010
Hi Krew! Do you now how many cars Lexus sells in China.
  • B
  • December 7, 2010
@Pattebb: It's in the 50k range Audi runs China, with around 200k BMW and Mercedes are over 100k Lexus just released an RX and IS with smaller engines, which have gubmint subsidies and rebates, which will increase sales volume. If all goes well, next year Lexus can approach 100k8-) BD
  • T
  • April 30, 2012
What does it mean to say "Toyota charges a premium of almost $70,000 after taxes"?
    • K
    • May 1, 2012
    This article is old, but it means that the GX is priced $70,000 USD higher in China than in the USA.