Lexus a big flop in Japan? Only 51% of sales target reached
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Lexus a big flop in Japan? Only 51% of sales target reached
Despite tripling the original sales target for the first two months of the initial launch, sales declined sharply thereafter and the total sales for 2005 ended up with a paltry 51% of the original sales target. Seems that Lexus has a lot more to do before the new brand name can be established in their homeland.
http://nikkeibp.jp/wcs/leaf/CID/onair/jp/biz/420022
Google translation:
http://translate.google.com/translat...language_tools
http://nikkeibp.jp/wcs/leaf/CID/onair/jp/biz/420022
Google translation:
http://translate.google.com/translat...language_tools
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I think that this failure is a VERY good thing for Lexus. VERY good. I think they are going to work even HARDER to bring the best products to the market.
Japan is very much so about image with the premium brands. Benz and BMW control the market. with over 40k sales each. Audi sold 15k+ cars.
Lexus wants to sell I think 50k this year and eventually 100k a year in Japan.
Also, the linup is limited, IS and GS and SC (which is a low volume car).
This might be a good slap in the fact for a compnay that has been on a literal roll for 16 years.
Japan is very much so about image with the premium brands. Benz and BMW control the market. with over 40k sales each. Audi sold 15k+ cars.
Lexus wants to sell I think 50k this year and eventually 100k a year in Japan.
Also, the linup is limited, IS and GS and SC (which is a low volume car).
This might be a good slap in the fact for a compnay that has been on a literal roll for 16 years.
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The Nikkei article does mention that one of the main reasons for the failure so far is because of the lack of a flagship model. They anticipate the brand name to be much better established with the arrival of the flagship LS. We'll see and hope for the best of Lexus.
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Time for some
I.............N............C.............E................N...............T..................I................V...............E...............S
I.............N............C.............E................N...............T..................I................V...............E...............S
Last edited by mmarshall; Feb 7, 2006 at 09:46 AM.
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Originally Posted by XeroK00L
The Nikkei article does mention that one of the main reasons for the failure so far is because of the lack of a flagship model. They anticipate the brand name to be much better established with the arrival of the flagship LS. We'll see and hope for the best of Lexus.
Originally Posted by 1SICKLEX
I think that this failure is a VERY good thing for Lexus. VERY good. I think they are going to work even HARDER to bring the best products to the market.
Japan is very much so about image with the premium brands. Benz and BMW control the market. with over 40k sales each. Audi sold 15k+ cars.
Lexus wants to sell I think 50k this year and eventually 100k a year in Japan.
Also, the linup is limited, IS and GS and SC (which is a low volume car).
This might be a good slap in the fact for a compnay that has been on a literal roll for 16 years.
Japan is very much so about image with the premium brands. Benz and BMW control the market. with over 40k sales each. Audi sold 15k+ cars.
Lexus wants to sell I think 50k this year and eventually 100k a year in Japan.
Also, the linup is limited, IS and GS and SC (which is a low volume car).
This might be a good slap in the fact for a compnay that has been on a literal roll for 16 years.
Last edited by Bercasio; Feb 7, 2006 at 09:44 AM.
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Many in Japan may still pick a Toyota Crown as their luxury car to buy from Toyota rather than the GS or the IS, there're too few Lexus models in Japan now (they're still selling the RX as a Toyota harrier & the LS as the Celsior) ) & they need to differentiate more between Lexus & Toyota car models in Japan over time. They just began going into a transition period & it takes time.
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Uhhh, I don't know where the heck this news comes from, because I've heard contrary evidence, that Lexus sales in Japan were RIGHT on target. Keep in mind people that Lexus only started selling near the end of 2005 in Japan, and they managed about 10,000 sales. The new LS will be added this year to the lineup, with the possibility of other models as well.
I don't think it's a "failure", because for the first two months or so, sales WERE above expectations.
I don't think it's a "failure", because for the first two months or so, sales WERE above expectations.
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Originally Posted by TRDFantasy
Uhhh, I don't know where the heck this news comes from, because I've heard contrary evidence, that Lexus sales in Japan were RIGHT on target.
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Originally Posted by XeroK00L
Well Nikkei is THE biggest news source in Japan. Lexus had hoped for sales of 20,000 units in 2005 and made only 10,293. Hard numbers don't lie.
If sales really were below expectations, its still great that Lexus managed such sales on only 3 models, one of which is a rebadge for Japanese customers.
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Originally Posted by TRDFantasy
. . . Audi's total sales were less than 20K annually for 2005 in Japan. I think Benz was somewhere around 30K, and BMW about 40K.
Originally Posted by TRDFantasy
If sales really were below expectations, its still great that Lexus managed such sales on only 3 models, one of which is a rebadge for Japanese customers.
Last edited by Gojirra99; Feb 7, 2006 at 11:18 AM.
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Japanese people arent that interested in badges in fact most luxury cars are chaufer driven. They need to discontinue some of there premium toyotas like the crown before lexus becomes successful.