Lexus is aiming to increase its European sales from an estimated 29,000 units in 2005 to 45,000 units in 2006 – representing an annual increase of some 55%. Lexus’ European sales in 2004 were around 25,000 units.
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By 2010 Lexus is aiming to achieve annual sales of some 65,000 units in Europe.
Toyota’s luxury division has long been seen as an underachiever in Europe in contrast with its highly successful performance in the US where annual Lexus sales are in the region of 300,000 units. European sales for the Mercedes-Benz and BMW brands were 690,000 units and 580,000 units respectively in 2004.
Lexus managers are planning a European sales surge on the back of a clutch of new models. However, the new entry-level IS (pitched in the market in the lower executive/ ‘D-premium’ segment of the market against the likes of the BMW 3 Series, Mercedes C-Class and Audi A4) is expected to account for much of the increased sales volume for the brand in Europe over the next few years.
The IS is being launched in Europe with a diesel engine, Lexus’ first diesel engine offering. The 2.2-litre diesel powerplant in the Lexus IS 220d variant is seen as crucial to the IS range’s sales prospects in the European marketplace and the diesel model is expected to account for 70% of IS sales in Europe.
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By GlobalDataThe IS launch range also includes the IS 250 variant which is powered by a 2.5-litre V6 direct injection gasoline engine. Lexus is staying coy about whether or not a hybrid version of the IS will follow (‘no plans’).
In addition to the expected volume impact of the IS in Europe, Lexus also maintains that the brand is seeing a significant lift from lower volume product introductions and rising sales from models such as the GS and RX. 2006 sees the introduction of Lexus’ second hybrid vehicle, the GS450h, as well as the next LS at the top of the Lexus range.
Speaking at the European media launch of the Lexus IS in Rome, Lexus Europe Director Stuart McCullough said: “Three years ago we decided to transform the Lexus business globally. One of the fundamental challenges we faced in our desire to build a truly global premium brand was to demonstrate success in Europe. Success here was crucial if we were to build the brand’s reputation in the way we sought.”
“2005 has been the year when some of the biggest changes to Lexus have reached the market.
“The new GS went on sale in late April of this year. Sales of the model [for Europe projected at 6,000 units for 2005] are some eight times higher than sales in the last full year of the outgoing model.
“From a European perspective it is particularly exciting to see that sales growth for the new GS has been particularly strong in markets such as Germany and Russia.
“In May we introduced the RX400h and despite some serious supply shortages we will sell around 5,000 units this year, a figure that will double to over 10,000 units in 2006.
“But right now our focus is firmly on the introduction of the new IS. It will give our sales volume a serious boost and is the foundation of our future Lexus business.”
“We expect our sales growth in Europe to be more broadly spread across the region in the future,” McCullough told just-auto.
“But Russia has particularly great potential for Lexus as a rapidly emerging premium car market,” he added.
“Lexus sales in Russia are currently running at around 5,000 units per annum, but that figure could very quickly rise to 10,000 or 15,000 units.”
Dave Leggett
