Lexus Behind Benz & BMW in China Growth
03-30-11, 01:34 PM
#31
i was going to stop here, but i believe i should give you guys some more information before i go.
the cheapest lexus in china, is IS250 that has the starting price of 370k RMB, or 56k USD.
next cheapest one is ES is ES240 that has starting price of 400k RMB, or 61.5k USD.
RX270 starts at 500k RMB, or 77k USD. the RX350 cost 792kRMB, or 121k USD.
so, how does that compare to BMW/MB?
let's see
Audi A4 1.8 starts 291k RMB, or 44k USD. the 2.0T starts 309.8k RMB. A6 start 355k RMB. Q5 starts 379.8k RMB.
BMW 3 starts at 280k RMB. 5 starts at 418.6k RMB.
Benz C starts 308k RMB, and E start 465k RMB.
the result is very clear, you get to be an id*ot to buy a ES240 instead of BMW 5, right?
granted, compare to the imported cars, lexus' pricing is not outrageous, and guess what? Lexus sold the most amount Chinese imported market.
it is clear. if lexus want to sell more, they have to start manufacturing cars in China, or forever be priced 30% higher than the competitor's entry level cars.
the cheapest lexus in china, is IS250 that has the starting price of 370k RMB, or 56k USD.
next cheapest one is ES is ES240 that has starting price of 400k RMB, or 61.5k USD.
RX270 starts at 500k RMB, or 77k USD. the RX350 cost 792kRMB, or 121k USD.
so, how does that compare to BMW/MB?
let's see
Audi A4 1.8 starts 291k RMB, or 44k USD. the 2.0T starts 309.8k RMB. A6 start 355k RMB. Q5 starts 379.8k RMB.
BMW 3 starts at 280k RMB. 5 starts at 418.6k RMB.
Benz C starts 308k RMB, and E start 465k RMB.
the result is very clear, you get to be an id*ot to buy a ES240 instead of BMW 5, right?
granted, compare to the imported cars, lexus' pricing is not outrageous, and guess what? Lexus sold the most amount Chinese imported market.
it is clear. if lexus want to sell more, they have to start manufacturing cars in China, or forever be priced 30% higher than the competitor's entry level cars.
and as you pointed out, they sold 45k Crowns!
03-30-11, 03:52 PM
#33
The Chinese (along with anybody else in the world) are capable of building reliable, high end goods. It is all about how you do business and manage quality control.
Bad goods can come out of USA and Japan too, it is just that quality control is at a higher standard in these areas.
It is inevitable that the Chinese will start producing high end goods and even domestic luxury brands that the world will one day want.
03-30-11, 03:57 PM
#34
Wow, now that is some narrow thinking.
The Chinese (along with anybody else in the world) are capable of building reliable, high end goods. It is all about how you do business and manage quality control.
Bad goods can come out of USA and Japan too, it is just that quality control is at a higher standard in these areas.
It is inevitable that the Chinese will start producing high end goods and even domestic luxury brands that the world will one day want.
The Chinese (along with anybody else in the world) are capable of building reliable, high end goods. It is all about how you do business and manage quality control.
Bad goods can come out of USA and Japan too, it is just that quality control is at a higher standard in these areas.
It is inevitable that the Chinese will start producing high end goods and even domestic luxury brands that the world will one day want.
i also have to say it's unfair to say anything from china is bad. it's all about quality control. some chinese manufacturers are already capable of making very high quality products (yeah, lexus using them too), but the main problem has always been quality control, how they reject questionable parts.
03-30-11, 04:01 PM
#35
It is just a fact, when I bring up Lexus to my connections in China, they usually scoff at me and say how much they prefer Benz. Only the few that appreciates cars will feel intrigued when I bring up lexus and their luxury ride, attention to detail.
I must admit though, when it comes to the upper echelons like S class and CL class, the competition is very close between the two.
Chinese market is very 'special' and is considered a chance of a lifetime for an unpopular brand to become a powerhouse.
One particular example I can think of now is Dunhill, how many Americans even know about Dunhill? it is one of the most highly regarded brands in China right now.
I must admit though, when it comes to the upper echelons like S class and CL class, the competition is very close between the two.
Chinese market is very 'special' and is considered a chance of a lifetime for an unpopular brand to become a powerhouse.
One particular example I can think of now is Dunhill, how many Americans even know about Dunhill? it is one of the most highly regarded brands in China right now.
03-30-11, 04:13 PM
#36
Lexus Fanatic
the chinese can't seem to invent anything reliable.
but if you give them blueprints, they can build stuff really well. we all have tons of made-in-china stuff, like Apple goodies.
I don't see anything wrong in building a lexus plant in china. As long as my US-bought lexus is imported from japan, I don't really care where other lexus are built.
on the matter of prestige....... i wonder why buick is considered prestigious...
but if you give them blueprints, they can build stuff really well. we all have tons of made-in-china stuff, like Apple goodies.
I don't see anything wrong in building a lexus plant in china. As long as my US-bought lexus is imported from japan, I don't really care where other lexus are built.
on the matter of prestige....... i wonder why buick is considered prestigious...
03-30-11, 04:41 PM
#37
the chinese can't seem to invent anything reliable.
but if you give them blueprints, they can build stuff really well. we all have tons of made-in-china stuff, like Apple goodies.
I don't see anything wrong in building a lexus plant in china. As long as my US-bought lexus is imported from japan, I don't really care where other lexus are built.
on the matter of prestige....... i wonder why buick is considered prestigious...
but if you give them blueprints, they can build stuff really well. we all have tons of made-in-china stuff, like Apple goodies.
I don't see anything wrong in building a lexus plant in china. As long as my US-bought lexus is imported from japan, I don't really care where other lexus are built.
on the matter of prestige....... i wonder why buick is considered prestigious...
China is such a dynamic market that some of the biggest companies from America have failed there (best buy, home depot, even Mattel, Barbie). The Chinese still love American brands though and they love the symbolic 'macho-ism' of American culture. Even a 300C is regarded as a cool/high end car.
03-30-11, 04:49 PM
#38
lol just today, i work on a brand new gx460. guess what i see on the radio unit (mark levinson)? made in china
i also have to say it's unfair to say anything from china is bad. it's all about quality control. some chinese manufacturers are already capable of making very high quality products (yeah, lexus using them too), but the main problem has always been quality control, how they reject questionable parts.
i also have to say it's unfair to say anything from china is bad. it's all about quality control. some chinese manufacturers are already capable of making very high quality products (yeah, lexus using them too), but the main problem has always been quality control, how they reject questionable parts.
There are good Chinese companies that are coming out with great products with meticulous quality control. One of my friends manages a large wheel manufacturing factory in China (outsourced from here in LA), it is a perfect example of the type of quality standards that other companies should be demanding from Chinese manufacturers. A lot of the times though, it is the poor budget and management of the outsourcing company that produces the bad quality product.
So yea, it is pretty ignorant to say Chinese companies can't be trusted to build high end products. Check the label on your wife's LV purse.
03-30-11, 06:17 PM
#39
Haha, I find that funny too. When I'm bored at markets or stores I just walk around flipping various packages in curiosity to see where they're made. When you think about it...it is pretty shocking that our stores are just FULL of China-made products.
There are good Chinese companies that are coming out with great products with meticulous quality control. One of my friends manages a large wheel manufacturing factory in China (outsourced from here in LA), it is a perfect example of the type of quality standards that other companies should be demanding from Chinese manufacturers. A lot of the times though, it is the poor budget and management of the outsourcing company that produces the bad quality product.
So yea, it is pretty ignorant to say Chinese companies can't be trusted to build high end products. Check the label on your wife's LV purse.
There are good Chinese companies that are coming out with great products with meticulous quality control. One of my friends manages a large wheel manufacturing factory in China (outsourced from here in LA), it is a perfect example of the type of quality standards that other companies should be demanding from Chinese manufacturers. A lot of the times though, it is the poor budget and management of the outsourcing company that produces the bad quality product.
So yea, it is pretty ignorant to say Chinese companies can't be trusted to build high end products. Check the label on your wife's LV purse.
.
03-31-11, 12:32 AM
#42
Wow, now that is some narrow thinking.
The Chinese (along with anybody else in the world) are capable of building reliable, high end goods. It is all about how you do business and manage quality control.
Bad goods can come out of USA and Japan too, it is just that quality control is at a higher standard in these areas.
It is inevitable that the Chinese will start producing high end goods and even domestic luxury brands that the world will one day want.
The Chinese (along with anybody else in the world) are capable of building reliable, high end goods. It is all about how you do business and manage quality control.
Bad goods can come out of USA and Japan too, it is just that quality control is at a higher standard in these areas.
It is inevitable that the Chinese will start producing high end goods and even domestic luxury brands that the world will one day want.
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