Does Lexus Have Factories in China?
4 Answers
Reasons why Lexus does not set up factories in China: 1. Profit Maximization: The actual price of the Lexus ES is higher than that of the Audi A4L and BMW 3 Series, not because its brand image is more premium, but because in the minds of Chinese consumers, 'imported cars' are considered more upscale than 'joint-venture cars.' If Lexus were to establish factories in China, the allure of being a 'pure imported car' would fade, leading to a potential drop in prices and a negative impact on the brand image. 2. Japan is geographically close to China, resulting in low logistics costs. However, the distance to India, Africa, and European countries is much greater: Currently, Lexus performs well in both the U.S. and Chinese markets, but it has not gained significant traction in Europe or Africa. To achieve global expansion and sell its vehicles in Africa and Europe, Lexus must reduce logistics expenses to enhance competitiveness. Establishing a factory in India would facilitate easier transportation of products to Europe and Africa, thereby expanding overseas markets. 3. The Indian automotive market has great potential but lower purchasing power. Localizing production in India would benefit Lexus's development there: While Lexus has already established a strong presence in China, it has yet to do so in India. Local production in India would lower Lexus's prices in the Indian market and boost competitiveness. Additionally, India's relatively lower labor costs would significantly contribute to increasing manufacturing profits.
I remember asking about Lexus when buying a car. They really don’t have a factory in China; all their cars are imported from Japan. The quality is indeed reliable—I’ve driven mine for years with few minor issues, though the price is a bit higher due to tariffs and shipping costs. My friends drive domestic cars that are affordable and good value, but with an imported car like Lexus, the genuine parts for maintenance give more peace of mind. In the auto market, Toyota has a joint venture with GAC to produce Toyota-branded cars, but Lexus might be produced separately to maintain its premium image and avoid mixing with mainstream models. With such a huge auto market in China, rising demand might lead to setting up a factory in the future, but there’s no news yet. The mechanics say imported parts take longer to arrive but are worth it. If your budget allows, choosing Lexus is a good option—it holds its value well.
As an ordinary car enthusiast, let me talk about Lexus factories. In China, there are no production bases at all - its full import status makes it appear particularly prestigious. Toyota has joint ventures like GAC Toyota and FAW Toyota manufacturing regular cars in China, but Lexus insists on Japanese production to maintain pure pedigree. I remember reading reports that imported vehicles undergo strict quality control with significantly lower failure rates. Although the price is higher, it saves trouble and money in the long run. While Chinese policies support localization, this strategy of high-end brands actually attracts consumers more. During test drives, salespeople mentioned the meticulous import process with perfect attention to detail. Having a Chinese factory would make prices more affordable, but there are no plans yet - maintenance parts still rely on imports which remains quite convenient.
When getting my car repaired, I often hear Lexus owners complain about the slightly higher maintenance costs but praise the car's exceptional durability. The reason is that Lexus doesn't have any factories in China, so all parts are imported from Japan. Toyota has joint ventures in China producing Toyota vehicles, while Lexus maintains separate production to highlight its premium positioning. As a user, I've experienced that imported cars have higher reliability with fewer issues, and although maintenance intervals are slightly longer, it's worth it. The Chinese market has huge demand, but setting up factories involves high investment risks, so there's no immediate plan. Looking ahead, prices might drop, but for now, just choose it and trust in its quality.
