XeroK00L

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

rominl

iTrader: (4)

ouch, that hurts. for sure lexus needs to brush it up in japan and make people know that it's no toyota anymore (with the added price premium)

LexFather

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.

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.

mmarshall

Time for some
I.............N............C.............E................N...............T..................I................V...............E...............S

LexFather

Did I read BMW sells the cheapo 1-series in Japan? Well that would help sales.

Bercasio

iTrader: (1)

I agree with with you on this, that will make the products that much better in Japan, especially in all of North America and elsewhere. And with the intro to the New LS460L, this will only be seen as just a LEXUS brand around the world including Japan. No more "Celsior!"....As for Lexus success in Japan, it's only a matter of time!!!... Zen patience!!!

Gojirra99

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.

LexFather

LMAO, can u image LExus rebates

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. 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.

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.

sha4000

iTrader: (1)

guess they dont want to pay the mark up for a toyota

TRDFantasy

I'll try and find the sources where I heard contrary evidence. Considering the SC is just a rebadged Soarer, I can see its sales suffering. Lexus needs more distinct models for sure in Japan. Audi's total sales were less than 20K annually for 2005 in Japan. I think Benz was somewhere around 30K, and BMW about 40K.

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.

Gojirra99

There was an article on that a couple weeks ago & I think those numbers are ~ correct, will try to dig it up for you later
10,293 Lexus cars(only IS,GS & SC) sold in 4 months in Japan is not bad whereas the Germans are selling the A class & 1 series etc. in Japan to get the above sales #'s in one FULL year in 2005.

MSMLexIS

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.