Reduced Import Tariffs in China Should Mean Big Business for Lexus

Posted by Kevin on May 29th, 2018

China has reduced automotive import tariffs from 25% to 15% in an effort to open up the country’s markets and spur development of the local auto sector.

The timing of this lower rate could not come at a better time for Lexus, the only luxury brand in China that imports 100% of its vehicles. The ES sedan is currently the best-selling import in the country, and its success has elevated Lexus to the second-largest vehicle importer in the country. Factor in the upcoming next-generation ES, and Lexus will be well-positioned to see a significant increase in overall sales.

China imported 1.22 million vehicles last year, or about 4.2 percent of the country’s total sales of about 28.9 million automobiles.

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Comments
S
The Lexus NX soars 56% year-on-year to #3. ES up 14%.

https://bestsellingcarsblog.com/2018/05/china-imports-april-2018-lexus-up-34-to-2-below-mercedes/
S
The Lexus NX soars 56% year-on-year to #3. ES up 14%.

https://bestsellingcarsblog.com/2018/05/china-imports-april-2018-lexus-up-34-to-2-below-mercedes/
S
new report on Lexus sales rising in China 34%:
https://lexusenthusiast.com/forums/threads/lexus-sales-increase-34-in-china-april-2018.4489/
S
new report on Lexus sales rising in China 34%:
https://lexusenthusiast.com/forums/threads/lexus-sales-increase-34-in-china-april-2018.4489/
S
new report on Lexus sales rising in China 34%:
https://lexusenthusiast.com/forums/threads/lexus-sales-increase-34-in-china-april-2018.4489/
S
It's funny how Chinese auto press have been predicting the death of the Land Cruiser and the Prado for the past few years. Yet every now and then they post surprising sales figures.

City dwellers should really learn as long as there are people living in places without proper road infrastructure, off-road trucks and SUVs (especially BOFs) will not die.
S
It's funny how Chinese auto press have been predicting the death of the Land Cruiser and the Prado for the past few years. Yet every now and then they post surprising sales figures.

City dwellers should really learn as long as there are people living in places without proper road infrastructure, off-road trucks and SUVs (especially BOFs) will not die.
S
It's funny how Chinese auto press have been predicting the death of the Land Cruiser and the Prado for the past few years. Yet every now and then they post surprising sales figures.

City dwellers should really learn as long as there are people living in places without proper road infrastructure, off-road trucks and SUVs (especially BOFs) will not die.
S
@krew maybe rename thread to Lexus sales in China 2018?
S
@krew maybe rename thread to Lexus sales in China 2018?
S
@krew maybe rename thread to Lexus sales in China 2018?
S
@ssun30 Chinese Retail sales for April 2017:
https://bestsellingcarsblog.com/201...l-sales-three-sedans-on-top-baojun-510-1-suv/

- this is real sales to the customers
- only locally produced models.

Toyota up 16%... Crown up, Prado down for the month but I think I saw somewhere that it is up YoY for the year too.
S
@ssun30 Chinese Retail sales for April 2017:
https://bestsellingcarsblog.com/201...l-sales-three-sedans-on-top-baojun-510-1-suv/

- this is real sales to the customers
- only locally produced models.

Toyota up 16%... Crown up, Prado down for the month but I think I saw somewhere that it is up YoY for the year too.
S
@ssun30 Chinese Retail sales for April 2017:
https://bestsellingcarsblog.com/201...l-sales-three-sedans-on-top-baojun-510-1-suv/

- this is real sales to the customers
- only locally produced models.

Toyota up 16%... Crown up, Prado down for the month but I think I saw somewhere that it is up YoY for the year too.
mmcartalk
ssun30
It's funny how Chinese auto press have been predicting the death of the Land Cruiser and the Prado for the past few years. Yet every now and then they post surprising sales figures.

City dwellers should really learn as long as there are people living in places without proper road infrastructure, off-road trucks and SUVs (especially BOFs) will not die.
Interesting that the Chinese press would say that. Western China itself, with its remote deserts, mountains and harsh climate, is a good environment for off-road vehicles. It is vastly different from the heavily-populated, mostly urban, and industrial Eastern part of the country, and has a totally different population and culture.
mmcartalk
ssun30
It's funny how Chinese auto press have been predicting the death of the Land Cruiser and the Prado for the past few years. Yet every now and then they post surprising sales figures.

City dwellers should really learn as long as there are people living in places without proper road infrastructure, off-road trucks and SUVs (especially BOFs) will not die.
Interesting that the Chinese press would say that. Western China itself, with its remote deserts, mountains and harsh climate, is a good environment for off-road vehicles. It is vastly different from the heavily-populated, mostly urban, and industrial Eastern part of the country, and has a totally different population and culture.
mmcartalk
ssun30
It's funny how Chinese auto press have been predicting the death of the Land Cruiser and the Prado for the past few years. Yet every now and then they post surprising sales figures.

City dwellers should really learn as long as there are people living in places without proper road infrastructure, off-road trucks and SUVs (especially BOFs) will not die.
Interesting that the Chinese press would say that. Western China itself, with its remote deserts, mountains and harsh climate, is a good environment for off-road vehicles. It is vastly different from the heavily-populated, mostly urban, and industrial Eastern part of the country, and has a totally different population and culture.
S
Just found that Lexus China removed the GX from their official line-up. I wonder if the model is finally dead or they are preparing for the second facelift. A GX350 would certainly help with the fuel economy problem the GX400 had.

The decision to go with the 3.5 on the (China and JDM) Prado met a lot of resistance in China because the 2.7 and 4.0 could run on low quality fuel prevalent in Western China, while the 3.5 requires Premium. It means a lot of places are now unreachable by the 3.5 Prado (because these areas also ban the use of fuel cans). Used models and Middle-East spec imports increased considerably in value because they are using the older engines. However the GX won't be dealing with the same problem so the 3.5 could work.
S
Just found that Lexus China removed the GX from their official line-up. I wonder if the model is finally dead or they are preparing for the second facelift. A GX350 would certainly help with the fuel economy problem the GX400 had.

The decision to go with the 3.5 on the (China and JDM) Prado met a lot of resistance in China because the 2.7 and 4.0 could run on low quality fuel prevalent in Western China, while the 3.5 requires Premium. It means a lot of places are now unreachable by the 3.5 Prado (because these areas also ban the use of fuel cans). Used models and Middle-East spec imports increased considerably in value because they are using the older engines. However the GX won't be dealing with the same problem so the 3.5 could work.
S
Just found that Lexus China removed the GX from their official line-up. I wonder if the model is finally dead or they are preparing for the second facelift. A GX350 would certainly help with the fuel economy problem the GX400 had.

The decision to go with the 3.5 on the (China and JDM) Prado met a lot of resistance in China because the 2.7 and 4.0 could run on low quality fuel prevalent in Western China, while the 3.5 requires Premium. It means a lot of places are now unreachable by the 3.5 Prado (because these areas also ban the use of fuel cans). Used models and Middle-East spec imports increased considerably in value because they are using the older engines. However the GX won't be dealing with the same problem so the 3.5 could work.
S
ssun30
Just found that Lexus China removed the GX from their official line-up. I wonder if the model is finally dead or they are preparing for the second facelift. A GX350 would certainly help with the fuel economy problem the GX400 had.

The decision to go with the 3.5 on the (China and JDM) Prado met a lot of resistance in China because the 2.7 and 4.0 could run on low quality fuel prevalent in Western China, while the 3.5 requires Premium. It means a lot of places are now unreachable by the 3.5 Prado (because these areas also ban the use of fuel cans). Used models and Middle-East spec imports increased considerably in value because they are using the older engines. However the GX won't be dealing with the same problem so the 3.5 could work.
there is an update to GX coming, but it should be next year?

In any case, GX is only selling well in the USA.

Prado seems to be doing good, so always take those comments with a grain of salt.

Another point - LS500h sold 305 units in March, thats more than RX Hybrid:
https://bestsellingcarsblog.com/2018/05/china-april-2018-new-energy-toyota-byd-and-roewe-dominate/

Also, these are retail sales to the end customers, not usual factory to dealer sales, so you see vast difference in reported numbers.
S
ssun30
Just found that Lexus China removed the GX from their official line-up. I wonder if the model is finally dead or they are preparing for the second facelift. A GX350 would certainly help with the fuel economy problem the GX400 had.

The decision to go with the 3.5 on the (China and JDM) Prado met a lot of resistance in China because the 2.7 and 4.0 could run on low quality fuel prevalent in Western China, while the 3.5 requires Premium. It means a lot of places are now unreachable by the 3.5 Prado (because these areas also ban the use of fuel cans). Used models and Middle-East spec imports increased considerably in value because they are using the older engines. However the GX won't be dealing with the same problem so the 3.5 could work.
there is an update to GX coming, but it should be next year?

In any case, GX is only selling well in the USA.

Prado seems to be doing good, so always take those comments with a grain of salt.

Another point - LS500h sold 305 units in March, thats more than RX Hybrid:
https://bestsellingcarsblog.com/2018/05/china-april-2018-new-energy-toyota-byd-and-roewe-dominate/

Also, these are retail sales to the end customers, not usual factory to dealer sales, so you see vast difference in reported numbers.
S
ssun30
Just found that Lexus China removed the GX from their official line-up. I wonder if the model is finally dead or they are preparing for the second facelift. A GX350 would certainly help with the fuel economy problem the GX400 had.

The decision to go with the 3.5 on the (China and JDM) Prado met a lot of resistance in China because the 2.7 and 4.0 could run on low quality fuel prevalent in Western China, while the 3.5 requires Premium. It means a lot of places are now unreachable by the 3.5 Prado (because these areas also ban the use of fuel cans). Used models and Middle-East spec imports increased considerably in value because they are using the older engines. However the GX won't be dealing with the same problem so the 3.5 could work.
there is an update to GX coming, but it should be next year?

In any case, GX is only selling well in the USA.

Prado seems to be doing good, so always take those comments with a grain of salt.

Another point - LS500h sold 305 units in March, thats more than RX Hybrid:
https://bestsellingcarsblog.com/2018/05/china-april-2018-new-energy-toyota-byd-and-roewe-dominate/

Also, these are retail sales to the end customers, not usual factory to dealer sales, so you see vast difference in reported numbers.
krew
Reduced Import Tariffs in China Should Mean Big Business for Lexus

[​IMG]

Tariff rate drops from 25% to 15%.
View the original article post

spwolf
@krew maybe rename thread to Lexus sales in China 2018?
Done.
krew
Reduced Import Tariffs in China Should Mean Big Business for Lexus

[​IMG]

Tariff rate drops from 25% to 15%.
View the original article post

spwolf
@krew maybe rename thread to Lexus sales in China 2018?
Done.
krew
Reduced Import Tariffs in China Should Mean Big Business for Lexus

[​IMG]

Tariff rate drops from 25% to 15%.
View the original article post

spwolf
@krew maybe rename thread to Lexus sales in China 2018?
Done.
S
spwolf
Prado seems to be doing good, so always take those comments with a grain of salt.
The increase of Middle-East spec imports seems to confirm this trend. FAW's Prado will never return to the 5k/month level without the old faithful 2.7 and 4.0. The inability to take low quality fuel and lack of spare parts is a recurring complaint among hire drivers in Tibet and Sinkiang.

Of course the increase in amenities and better fuel economy increases its appeal in the east coast, that will surely help with sales. Combined sales of FAW and Middle-East spec imports should stay strong. But FAW-Toyota is ruining its own business here.

spwolf
Another point - LS500h sold 305 units in March, thats more than RX Hybrid:
305 units per month is barely any. But again, we will see the true potential of 5LS when it receives that ¥100k drop.
S
ssun30
The increase of Middle-East spec imports seems to confirm this trend. FAW's Prado will never return to the 5k/month level without the old faithful 2.7 and 4.0. The inability to take low quality fuel and lack of spare parts is a recurring complaint among hire drivers in Tibet and Sinkiang.

Of course the increase in amenities and better fuel economy increases its appeal in the east coast, that will surely help with sales. Combined sales of FAW and Middle-East spec imports should stay strong. But FAW-Toyota is ruining its own business here.



305 units per month is barely any. But again, we will see the true potential of 5LS when it receives that ¥100k drop.
Compared to what though? 305 units of LS500h (dont know ratio to V6), for Lexus size in China is roughly comparable to LS sales in USA, and certainly a lot more than EU.

Again, it is more than they sold RX450h, context is the key here.
S
spwolf
Compared to what though? 305 units of LS500h (dont know ratio to V6), for Lexus size in China is roughly comparable to LS sales in USA, and certainly a lot more than EU.

Again, it is more than they sold RX450h, context is the key here.
I don't understand your point here. Are you suggesting there's something wrong with the RX450h? Yes there is. The RX450h has severely compromised pricing which is why they barely sell any. Like EU, the Chinese market is in desparate need for a more affordable "RX350h".
maiaramdan
Honestly, ES will do well in China whether pre or after tariff

M