Lexus Sees Strong Growth in Latin America

“Lexus

Latin America is the fastest-growing region for Lexus in the world, with a 32% sales increase in 2016 — from a December 2016 article at Automotive News :

Those impressive numbers came from just seven dealerships in seven major cities with total sales estimated at about 2,100 vehicles by year end. Lexus’ regional market share in the luxury segment grew to 2.9 percent this year from 1.9 percent in 2015.

Lexus has a single dealership in major cities of Brazil, Chile, Peru, Bolivia and Costa Rica. Temporary stores in Panama and the Dominican Republic will move into proper showrooms by mid-2017.

Lexus didn’t launch in the region until 2012, and are at a price disadvantage in Brazil compared to their German competitors — BMW, Mercedes, and Audi all have local factories which allows them to avoid the 35% import tariff.

Other Latin countries do not have import taxes, and this has Lexus thinking about expansion:

“We do plan on growing,” [Lexus general manager for Latin America Jaycie] Dane said. Peru just opened a second location, and Chile is looking at a second store as well. “And then in Brazil, we’re going to be moving from one dealership to 10 dealerships next year.”

Argentina, another top economy in the region, recently removed a high luxury tax. That has Lexus looking at a possible launch there.