[mojo]

The US is expected to be one of the biggest if not the biggest market for the NX, China is expected as a close second. That could pose a problem for us.

China will shell out much more per vehicle than American consumers are interested in, where do you think Lexus would prefer to sell more NX's?

Back in the spring, a source at Lexus told TTAC that one of the biggest issues with the upcoming Lexus NX would be getting allocation. While the United States was expected to be the biggest market or the NX, China would also be competing for volume. The fact that the NX could be sold at a much steeper sticker price in China meant more profit for Lexus, and a stronger case for allocating more units to that market.

 

[Thai]

Doesn't China have that NX 2.0 (without turbo) model? If so, then yeah, they will buy buttloads of it. Hopefully, Lexus has anticipated the demand and ramp up production accordingly. I think that USA will make up the vast majority of 2.0t and hybrids being sold.

 

[mister]

I heard that the Chinese government is forcing car companies to lower the prices of many of their vehicles though. The NX will still be priced higher, but it may not be quite as bad as you would have previously thought. Hopefully that will stop Lexus from favoring CHina too much with volume.

 

[Kennedy]

Interesting.
It's good China is demanding that car makers do that, at least it will make it easier for people to get into vehicles.

 

[Thai]

Interesting.
It's good China is demanding that car makers do that, at least it will make it easier for people to get into vehicles.

Given that the vast majority of China folks are poor, these NX'es will go to corrupt government officials. >

 

[avocado]

This article http://www.bloomberg.com/news/2014-04-11/lexus-nx-crossover-to-pursue-china-s-audi-bmw-buyers.html "estimates Toyota will sell 2,720 NX crossovers in 2015, capturing 1.3 percent of the entry premium segment". To compete against Audi, BMW and MB which have greater market share, I think they can't be overpriced or they have to offer something different, like their hybrid.

 

[mojo]

I heard that the Chinese government is forcing car companies to lower the prices of many of their vehicles though. The NX will still be priced higher, but it may not be quite as bad as you would have previously thought. Hopefully that will stop Lexus from favoring CHina too much with volume.

No they're not being forced to lower vehicle prices, they're being forced to lower the prices of parts. The Chinese government knows if they start fiddling with how much a manufacturer can charge for a car they will simply pack up and go home.

http://www.forbes.com/sites/timwors...-is-just-catching-up-with-the-european-union/

China is having a little purge in the car or auto market in that country. Investigating most of the foreign manufacturers (which means most of the manufacturers) over possible monopoly practices in said market. It would be possible to think of this as part of a more generalised attack on foreign companies (both Microsoft MSFT +1.22% and Qualcomm QCOM +0.3% are facing inquiries as well) but in that auto market it does seem as if the action to protect consumers is justified. In many ways the authorities are simply bringing the Chinese market into line with the laws and regulations that apply inside the European Union.

The backstory is that the Chinese competition authorities are going after the car manufacturers, particularly about their control of spare parts. As a result many of those manufacturers are cutting their prices on spare parts

Its fairly fundamental, if the vehicle is priced out of the market it won't sell, you dont need government intervention to tell you that.

 

[mister]

You could be right that its only parts, but I'm not convinced that it could escalate into other prices as well. Seems like the Chinese are getting pretty intense about this. Within reason, I don't think it would force companies out of the country. They just wouldn't want to give up on such a huge market.

 

[Kennedy]

instead i think they would even it out on there end even if that has to be with cheaper quality parts