Toyota vs BMW and Mercedes in Japan
|   Saturday, July 14, 2012
Last Friday was launched Toyota's new arrival Lexus ES sedan which shows up all the luxuries which a car should have. Lexus was manufactured in Japan with and exceptional model RX sport in Canada. Toyota's chief executives confronted in the media that manufacturing this car in Japan is much cheaper than in the United States and therefore they have decided to produce more of the cars in Japan only.

This is assumed to build up a huge competition in the Asia's best automaker state as Toyota is all set to produce over 3 million cars in the region which is more than a double which Nissan Corp.
produce. Also people's favorite Honda will be affected by this.

The reason which is inspiring the automakers to get into the Japanese market for the manufacture is also because of the growing strength of the yen. It has wrinkled profit in the market of Japan with exports and therefore automakers see a good scope of business there. Although the automakers are expecting good business with this strategy, many an experts think that it won't be resulting in much of difference with present yen's stage.

"We work on quality and our business runs with our facilities" said Kazuo Ohara (vice president, Lexus International). He also adds up saying "ES is a car which will be sold by its name with its exciting features and there is no such worry for us if yen even crosses 80 against dollar. We just want to build up this business in Japan as much possible and for as long possible".

Talking about other brands, Audi, Mercedes-Benz and BMW have already entered China for manufacturing of their vehicles whereas Nissan is also planned for the same to begin it from 2014 onwards. Talking on this, Masatoshi Nishimoto (Manager, Japan and Korea vehicle forecast, IHS) said "Toyota will definitely move abroad in coming years but when, it can't be said now". Although he next confirms that it may be within the next five years for sure.

Toyota is taking this as a step ahead after the launch of Lexus and trying to establish its reputation back in the market. The car is expected to compete with BMW's 3 Series sedan and the C class of Mercedes-Benz.
Toyota has come up with the increase in sales this year between January – June in the United States with more than 18,000 cars being sold. This was a tremendous increase of about 10% compared to the last year's. Also around 74,000 cars were sold last year worldwide which shows a decent increase. Toyota's chief executives said that they are planning to sell more than 10,000 Lexus worldwide from August as the car has already gained popularity needed.

The car is available in 2 variants with 2.5 liter and 3.4 liter engines whose price is not yet revealed yet but is expected to be less than BMW's 3 series sedan.
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