Lexus to foray into used car biz by next year, roll out first EV by 2025 in India

Toyota-backed luxury carmaker Lexus is looking to make inroads into the used car business by the next year in India. Lexus aims to transition some of its sales outlets to cater to the pre-owned car vertical after factoring in the business viability of the dealer partner. At present, the carmaker sells its product range through 23 touch points.

Lexus India President Naveen Soni said in an interview with PTI that the automaker is seriously considering the introduction of a structured pre-owned car programme. Soni stated that the automaker is studying the market very keenly. "For us, the starting point would be cities where there is a sizable vehicle park," he added.

Soni also mentioned that the company is considering a short buyback scheme for customers. When asked about Lexus’ electric vehicle strategy, he said the automaker is also planning to roll out its first electric vehicle in India by 2025. Soni noted the company brought a few vehicles last year to test them in the diverse climatic conditions and get customer feedback.

"So we've got very good information about the behaviour pattern in these markets, like summer conditions, testing conditions, desert conditions, all that has gone back to Japan. Hopefully, by 2025 we should have our first EV product coming to this country," Soni said.

He noted that the company has increased its reach across the country by enhancing its sales network to 23 from four outlets in four cities a few years ago. "We were hardly covering 40-50 per cent of the luxury car market. We have now reached the 23 outlet mark and that has helped more customers to actually see and feel the product," Soni said.

The carmaker aims to go fully electric by 2035. Soni further said the company is on the verge of surpassing its last year’s volumes by July-end this year. He added 2023 would turn out to be the best year for the luxury car segment in India.

Before this, the luxury car industry in India was peaking in 2018 with around 40,000 units a year but came down to 20,000 units in the next two years due to the Covid-19 related disruptions.

"By the end of July, we would have done the same business as we did the entire last year...definitely will overtake the previous highest...I think we should do between 42,000 to 45,000 as an industry this year," Soni said.

(With PTI inputs)

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