Lexus to Open Dealerships in Mexico

Posted by Kevin on April 26th, 2019

Lexus will begin sales in Mexico after years of study, with the first dealerships in Mexico City, Monterrey, and Guadalajara set to open in late 2021.

The initial lineup will include the LS & LX flagships, the ES sedan, and the UX, NX, and RX crossovers, with hybrid technology as the focus. From Automotive News:

The Japanese automaker said it expects to be the “greenest” high-end brand in Mexico by using its hybrid technology to reduce emissions and increase fuel economy.

Not only are gasoline prices higher in Mexico than in the U.S. generally, but local governments in the massive Mexico City metropolitan area limit the circulation of gasoline-powered vehicles during smog alerts. Hybrids and electric cars are exempt from those limits.

Automotive sales in Mexico dipped 12-percent in 2018 to 1.42 million vehicles, but the luxury market is growing:

Last year, BMW sales rose 15 percent to just over 25,000 vehicles, and Mercedes-Benz was in second place with 16 percent growth to about 20,500 vehicles. Sales at Jaguar Land Rover more than doubled last year, while Volvo and Infiniti posted more modest gains.

Acura, Audi and Porsche sales fell slightly in 2018 compared with 2017, according to the Mexican Automobile Distributors Association. Sales through March of this year among the leaders in the luxury segment have been mostly flat, the association said.

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Comments
Joaquin Ruhi
Finally! This is such a long-overdue move.

I'm pressed for time now, but later I want to poke around and see if Mexican media has any additional information or insights.
Joaquin Ruhi
After browsing nearly a dozen Mexican media accounts, I'll say that, while the Automotive News account that kicked off this thread got the most pertinent information right, it didn't mention some lesser details, which I'll fill in.

- There will be a total of 5 Lexus dealers at launch. As noted, they will be located in Mexico City, Monterrey and Guadalajara. None of the accounts state which locale(s) get the "extra" dealers, but likely it would be Mexico City. Speaking of which, Expansión states that Mexico City's dealer(s) will open first, followed by those in the other cities.



- Even though the image above (from El Universal) clearly states the start of sales in the last quarter of 2021 (meaning no earlier than October), many of the Mexican reports say that sales will begin during the last trimester of 2021, and cite a September kickoff date.

- The head of Lexus de Mexico has yet to be named, but will report to Tom Sullivan, president of Toyota Motor Sales Mexico and will receive support from Lexus USA.

- As noted by Automotive News above, the delay until late 2021 to launch of the Lexus brand in Mexico is to "take advantage of a freshened product cycle for the 2022 model year". Given that, I'll combine Carmaker1 and Just-Auto predictions with the Mexican and Automotive News accounts to lay out a picture of Mexico's expected Lexus lineup at launch.

ES - To be offered in both hybrid and non-hybrid variants (presumably ES 300h and ES 350). The 2022 model year marks the mid-life refresh of the current model.

LS - Mexican reports differ on whether LS will be hybrid-only (LS 500h) or if the non-hybrid LS 500 will also be available. The current 5LS should have received a mid-life refresh by this point.

UX - The hybrid UX 250h is the sole variant to be offered in Mexico. As with ES, the 2022 model year marks the mid-life refresh of the current model.

NX - To be offered in both hybrid and non-hybrid variants. The TNGA-K 2NX enters production in July 2020 (2021 model year), probably in Cambridge, Canada.

RX - To be offered in both hybrid and non-hybrid variants. The late 2021 (2022 model year) start of sales in Mexico coincides with the launch of the TNGA-K 5RX.

LX - Based on its current configuration, Mexican reports describe LX as the sole non-hybrid Lexus line to be offered there. But "it ain't necessarily so". Sometime between July and September 2020 (2021 model year), the TNGA-B 4LX is expected to enter production, and who's to say it won't be offered in a hybrid version?
krew
krew

Lexus to Open Dealerships in Mexico
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First three set to open in 2021.
View the original article post
flexus
I have heard that Mexicans are quite fond of Lexus and import them from US.
Joaquin Ruhi
One more thing I forgot to mention: the Autología website suggests (tongue-in-cheek, perhaps?) that a 7th Lexus model will be offered in Mexico: the LY 650 yacht!
S
i dont know why would they be waiting for any of those models though... ok so maybe waiting for RX300h makes sense, but otherwise? I would think bigger differences would be from CT and possibly CT Sedan and maybe a vehicle smaller than UX.

Otherwise it is just investment cycle that takes 3 years after they decided to do it.
zeusus
Now the drug cartels can buy the LX in Mexico, send to Texas for armoring and get it all back, import tax free.
Trexus
Lexus should have entered the Mexican market a long time ago but better later than never...now it'll be nice to know that when we mention Lexus in North America that it will include U.S., Canada and Mexico...

T