Toyota Motor Corp.'s Lexus is considering assembling its
ES brand in the nation to take advantage of lower import tariffs on auto parts, the Asahi newspaper reported,
citing an unidentified official...
The marque was around for 25 years before Toyota opened its first production line in the U.S. -- and even there, new cars have to be
checked against the perfection of a Japanese-made model before they're allowed out of the plant...
To be sure, assembly isn't the same thing as full manufacturing. The current proposal centers on knock-down kits -- collections of pre-made parts designed for assembly in destination markets that have been a part of the global auto industry for a century.
That would mean a smaller local component to manufacturing, although even with complete knock-downs some elements such as paint
1 tend to be added in the end-market.
Such kits would attract duties of only 30 percent to 40 percent, compared to more than 100 percent for imports of finished cars, the Mumbai-based Economic Times
reported last October after rumors of such an arrangement surfaced...
Still, the decision represents a leap for both sides. Despite a
concerted push by the government and a
strong preference for better vehicles among consumers, India's tin-can-like cars are hardly synonymous with quality...
Meanwhile, taking even a lesser job like assembly out of the hands of the Japanese takumi is a sign that Lexus has reached a point of acceptance as competitors catch up with it on quality, and is preparing to let its hair down a little.
That's no bad thing. There's a huge market for prestige vehicles, and Toyota will be limited if it treats every premium car like a
Patek Philippe. A less obsessive Lexus might have to downgrade its quest for perfection to Rolex levels -- but as luxury goes, that's not a bad place to be.