Toyota plans to increase production capacity for its luxury brand Lexus to meet a strong demand in emerging countries.
The Japanese built 518,000 Lexus last year and is expected to boost its production to 850,000 by 2009, a 35% increase in two years. The luxury brand is meting a string demand from countries such as China and Russia.
By flooding the new markets with more vehicles and new models, the company wants to counter-attack the European offensive. Audi and BMW are getting serious at conquering China, Russia and India. Mercedes should soon declare its commitment to the new markets now it got rid off Chrysler.
Will the new markets accept the brand as the US did twenty years ago? Nothing is certain. Toyota launched the Lexus brand in Japan in 2005 and still underperforms there while the company struggles to establish itself as a competitor in Europe. From China, a European brand has certainly more appeal than a luxury brand form Japan.
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