Japan based premium car maker ‘Lexus China’ has denied reports that it has stopped importing cars. The car maker said that popular models like the ES300h are still being imported. An executive from the company on the condition of anonymity said that imports of some models with large inventories have been suspended.
Lexus China adjusts the supply of vehicles every month, moreover the volume of imports in October was decided on the basis of sales in September. The company executive said, “That is the way to guarantee the interest of dealers. If we import a large amount of cars continuously, regardless of the dealers’ inventory, they will get increasing pressure, which is bad for Lexus’ development in China”.
A sharp decline in September sales was noticed earlier, due to which the whole year’s plan for the company was disrupted. The company had planned to sell 88,000 cars in the Chinese market and has already sold 35,000 cars in the first half of the year. This positive response had caused them to aim higher for the yearly target. However, September sales resulted in disappointment. This was when the company decided to suspend some more imports, so that it could evaluate the dealers’ sales performance in the month of October.