flipside909

Despite The Philippines being a 3rd world country. There is extreme poverty and extreme wealth. There are many businessmen and foreigners that live in the Philippines that can afford vehicles like these. They cater to a specific demographic...and without surprise, they are doing well despite the world's economic status.

LexFather

Why would you NOT want to enter a market with demand.
If Lexus didn't enter, then people would say "Lexus isn't in Manila".

This is nothing, Lexus opened a dealership in a country in South America and I think the sales goal is 30 or something like that? (we posted it, I forgot).

There also is GROWTH there, so they want to get in.

RXSF

I guess its a long term investment. I would think they would be losing money in the short and middle run.

LexFather

Exactly, surely one of the reasons. Lexus is a brand in demand worldwide and has built a strong enough image that people want it.

marshmallo

Might as well go after developing markets since the "developed world" is
circling the drain

lex-phil

Yup, its a long term investment. Toyota already dominates the local market (40% of market share i think), so they brought in Lexus to take advantage of their renowned reputation in the country. Auto sales in the country is at an all time high, despite the weakened economy and is expected to grow further.

I don't think they are losing that much money either. Prices for these vehicles are so high (double US prices) that Lexus Manila is probably getting a higher profit margin per vehicle compared to US dealers.

Blackraven

Saw my first 3rd gen Prius in the road (a red one near Mandaluyong along Nueve De Pebrero near the squatters/shanties area).

It was a unique sight to see.....and it's very unique cause only 20 units of 3rd gen Toyota Prius have been sold here since June 2009 (that's an average of 2-3 units per month with a maximum allocation of 1 unit per dealer per month).

So for a third world country, I guess that's not too bad. Remember, 3G Prius costs 2.2 MILLION PESOS (with 600,000 pesos coming from import taxes and duties alone). That and what makes it worse for these kinds of cars is that government does not offer tax incentives or discounts for hybrid vehicles (HENCE they really pay 'full price' here). So yes it's an extremely niche vehicle here.

@anyways
I can't wait for the Lexus LS Hybrid to come here (even if the facelift version comes with an ugly *** front grille). With that said, it will still be a niche model probably 3 units per month at best....but hey, it's better than none.

P.S.
This car will go head-to-head with the S 400 Hybrid that MB Philippines-CATS MOTORS launched here last September 2009

hughh

We lived in Angeles City in 1967-69, courtesy of the USAF. One thing I remember vividly is that there are better mechanics in the Filipinas than there are in our country. It won't be long before someone grafts the innards of a Prius into a jeepney (:

Congrats to Lexus Pinoy! Here's wishing them lot's of success!

hughh

When we lived in the Philippines in the late 60's we were honored to attend a Christmas party at a mansion in what was known then as Forbes Park (?) (long time ago).

All you saw in that walled housing district were chauffeured driven Mercedes limousines!

Every time we had the opportunity to go shopping at Makati, that's all you ever saw...I guess the Mercedes Benz at that time was the Chevy of the well to do.
Maybe Lexus will take some of the clientele of MB the way they did here!