Massive Markup Levels Allows Lexus China To Overtake US In Profits

Toyota Motor Corp.’s profit per vehicle in China for its luxury Lexus brand has eclipsed that of the U.S., where it has been forced to increase incentives following record recalls earlier this year.

Even after China’s import duties and higher taxes on luxury cars, Lexus currently earns more per car in the world’s largest auto market, said Karl Schlicht, head of the marque’s global product and marketing division, citing a weaker dollar. Premium pricing in China and the higher incentive spending in the U.S. are also factors, analysts said.

The Lexus LS600hL, the brand’s flagship hybrid sedan, has a base price of 2.07 million yuan ($311,000) in China, compared with $110,000 in the U.S.


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enthusiastx11 - 12/3/2010 2:13:18 PM

0 Boost

funny...there's no mention of what the profits are in china vs. the US. anyone have insight?

Agent009 - 12/3/2010 3:52:43 PM

+1 Boost

That might be buried in the year end report. I do find it hard to believe they can peddle a LS for $311,000 base price. But then again if you can sell them at that price then by all means do so.

enthusiastx11 - 12/3/2010 4:46:54 PM

+1 Boost

it has nothing to do with what manufacturer want to charge. the chinese automotive market is largely closed to foreigners. they levy 200%+ tariffs on some. the $311,000 is $100,000 car with $200,000 tariffs on it. welcome the most walled off market in the world.

enthusiastx11 - 12/3/2010 4:47:53 PM

0 Boost

what does any of this have to do with the subject of this thread....the chinese market?