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Toyota Is Now Considering To Build Lexus Cars In China

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As China continues to claim a prominent spot in international economics, investors are opening up to the possibilities presented. For a long time, Japanese car manufacturer Toyota Motor Corp has been opposed to the idea of producing the Lexus brand in China. This has changed and executives have now hinted that there is a possibility its luxury brand Lexus might be produced in China for local consumption.

Among reasons that had previously pushed back Toyota’s ideas is concern that quality standards may be compromised. It is now emerging that things have been considerably ironed out, with one executive saying that they are now waiting the authorities’ permission.

Lexus, built from 1989 in the United States has risen to one of the top premium brands for Toyota and therefore the company’s concern on quality held some justifiable ground. Some top players, including Cadillac, BMW, and Mercedes-Benz have nonetheless set up production facilities for a long time in China.

Underscoring the need to make this move, one Toyota executive said that they are keen to have Lexus become a distinguished brand in China. Among Toyota brands produced in China in collaboration with partners are the Camry, Highlander, Corolla, Levin, and Crown.

Producing Lexus locally would significantly change the fortunes of the world’s largest car manufacturer. The improved China-Japan ties and changing investment polices in China is also a plus for Toyota.

Opportunities emerging in China are changing the way investors view the Asian economic giant. With a large population that would provide a ready market and with a rapidly growing market, China is tilting the economics of scale in a way that investors must pay attention to. Toyota sold 1.29 million cars in China in 2017, among them is several Lexus models.

Tesla, the leading electric car manufacturer is in the midst of planning to set up a manufacturing plant in China, further denoting Chinese growing influence importance.

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