Made in China Suits Volvo but not Lexus


Published Date : Nov 06, 2015

Lexus is among the very few luxury auto manufacturers that has not set up auto shops in China. Lexus is planning to stick to its plans at least for the next two decades until they are sure that China auto market workforce will be able to fulfill their stringent manufacturing demands. Lexus believes in the fact that vehicles should be well-made and that a car manufacturer must have required skills to manufacture perfect vehicles to match the needs of the buyers. In Lexus’s view, China lacks a long successful history of building vehicles, just like Lexus does. As per Lexus’ Takashi Yamamoto, Chinese workforce could take another decade to match Lexus. 

For the past few decades, businesses in Europe and America have faced many curious puzzles. Manufacturing was outsourced to countries such as Mexico and China where there is affordable labor. As far as products such as laptops, smartphones, and tablets are concerned, people are fine with China-made gadgets, especially because the products are light in weight and sleek in design. In other cases, such as luxury cars and watches, ‘Made in China’ could be a risky business. Numerous reports and studies have proven that Chinese people have been cautious about the products manufactured in their own country. As per reports, Chinese people prefer buying foreign products. In order to increase the sales of their local products and increase the product’s appeal, most of the emerging and leading companies have set up registered offices in Europe and the U.S. 

No matter how many people try to bash the ‘Made in China’ label, the products manufactured in China are gaining popularity as the Chinese companies are taking efforts with regards to quality. This shift will begin as Chinese companies target the consumers who buy Chinese-made cars and other gadgets. In case of luxury cars and gadgets, foreign brands will still favor the buyers, for at least another term. Gradually, that too, will change and Chinese companies will do a better job in selling their home products, especially luxury cars.