Lexus July 2018 Sales Report

A down month, but Truck/SUV sales were up with only the NX posting sales losses.

While digging into the numbers I feel like it is a repeat of last month: New LS does again not reach the 1000 target and LC again has a strange cool off: -45% And that is apparently even with incentives!

Notice that the ES still sells more than all the other cars combined. I'm really looking forward to the new model.

LDeleuran

A down month, but Truck/SUV sales were up with only the NX posting sales losses.

While digging into the numbers I feel like it is a repeat of last month: New LS does again not reach the 1000 target and LC again has a strange cool off: -45% And that is apparently even with incentives!

Notice that the ES still sells more than all the other cars combined. I'm really looking forward to the new model.

Yeah the LS and LC need some help stat as that is way below target. Amazing that the GX sells so well and it might be the oldest Lexus here. The IS is hanging on, 2k is pretty competitive. Oddly the GS seems to be near flat this year with no significant decrease in sales. The RC also needs a bump in the arm.

The RX.. is just a killer!

Lexus July 2018 sales commentary from a Bloomberg article:

Toyota Motor Corp.’s Lexus brand also (like Mercedes-Benz) posted its steepest drop of 2018. Sales tumbled 12 percent, the fifth straight month of declines, with gains for the RX and GX SUVs overwhelmed by a 28 percent collapse in sedans. Still, Lexus was the top-selling (luxury) brand (in the U.S. market) in July, as it was a year earlier.

Last year I predicted the demise of the GX after RX-L hits showrooms. Apparently I was gravely wrong. At this rate another facelift will be sufficient for the upcoming years until the GX redesign is finally done.

Does anyone feel the RX-L is not boosting the RX as expected? IIRC it was supposed to add 3,000 units per month extra even after accounting for cannabalization with the 2-row RX. It is strange to see the RX staying flat.

ssun30

Last year I predicted the demise of the GX after RX-L hits showrooms. Apparently I was gravely wrong. At this rate another facelift will be sufficient for the upcoming years until the GX redesign is finally done.

Does anyone feel the RX-L is not boosting the RX as expected? IIRC it was supposed to add 3,000 units per month extra even after accounting for cannabalization with the 2-row RX. It is strange to see the RX staying flat.

Not surprising at all. Lexus did a terrible job with the RX-L by not even bothering to increasing the wheelbase, resulting in by far the worst 3rd-row legroom in class. They had years to get the RX-L right and they totally blew it. I'm utterly baffled by their lack of effort for this highly anticipated model.

Definitely need the new ES and UX as soon as possible, not sure why there is such a delay between marketing and the availability of newer models. Surely not good for business. The Ls figures are a little disappointing and I have the feeling that a V8 version of this car must be made available all luxury opposition seem to offer a V8 version and so should Lexus. There is something special about a V8 motor and the LS deserves this as well.

ssun30

Last year I predicted the demise of the GX after RX-L hits showrooms. Apparently I was gravely wrong. At this rate another facelift will be sufficient for the upcoming years until the GX redesign is finally done.

Does anyone feel the RX-L is not boosting the RX as expected? IIRC it was supposed to add 3,000 units per month extra even after accounting for cannabalization with the 2-row RX. It is strange to see the RX staying flat.

actually they expected it to stay flat due to competition and large price premium. It is by far the best selling mid-size luxury SUV, they cant really grow the sales anymore there... they fight for keeping it same as before.

UX will add a bit to the sales for sure, and so will ES... but how much? 10%?

More exciting news worldwide in another thread, large gains for NX and RX. This is where UX will do its best, to introduce new clients to Lexus, that is less of an opportunity in the US.

The Lexus GX I thinkisexclusive to the USA? - not sure but it is based on the Toyota Prado which is one of Toyota's regular best sellers throughout Africa and has earned a sterling reputation for just going on and on. Available with an oldish 3 litre diesel motor or a 4 litre V8.
The bigger Lexus LX version is available as is the Toyota Land Cruiser.
Great cars and highly respected through out Africa - the brand of choice in terms of solid rugged reliability and performance.

Rob Grieveson

The Lexus GX I thinkisexclusive to the USA? - not sure but it is based on the Toyota Prado which is one of Toyota's regular best sellers throughout Africa and has earned a sterling reputation for just going on and on. Available with an oldish 3 litre diesel motor or a 4 litre V8.
The bigger Lexus LX version is available as is the Toyota Land Cruiser.
Great cars and highly respected through out Africa - the brand of choice in terms of solid rugged reliability and performance.

GX is sold in other markets, but it sells by far the best in the US.... LX on the other hand sells excellently in some other countries, especially Arab ones and its worldwide sales are close to GX's.

spwolf

GX is sold in other markets, but it sells by far the best in the US.... LX on the other hand sells excellently in some other countries, especially Arab ones and its worldwide sales are close to GX's.

You are correct in Dubai the desert days out for tourists are mainly carried out in brand new Lexus LX! In Africa Lexus Brand is still finding its feet and is struggling to gain a meaningful hold into the market, however it is happening although relatively slowly and their remarkable trouble free reputation is gaining recognition. Vehicle range is rather limited and pricey. The Germans all very strong in this market and of course the Toyota Brand is our top seller but has a full range of models available by comparison with Lexus and up until recently the Corolla was manufactured in South Africa for export to Australia. The Toyota'bakkie' ( smaller trucks and the Fortuner) are now their best sellers.

spwolf

GX is sold in other markets, but it sells by far the best in the US.... LX on the other hand sells excellently in some other countries, especially Arab ones and its worldwide sales are close to GX's.

You are correct in Dubai the desert days out for tourists are mainly carried out in brand new Lexus LX! In Africa Lexus Brand is still finding its feet and is struggling to gain a meaningful hold into the market, however it is happening although relatively slowly and their remarkable trouble free reputation is gaining recognition. Vehicle range is rather limited and pricey. The Germans all very strong in this market and of course the Toyota Brand is our top seller but has a full range of models available by comparison with Lexus and up until recently the Corolla was manufactured in South Africa for export to Australia. The Toyota'bakkie' ( smaller trucks and the Fortuner) are now their best sellers.

GX is Lexus unsung hero... 2k+ per month since late 2013 when it was refreshed. Amazing.

Lexus revived the GX from imminent death.

Also, the LS topped the flagship sedan segment for the first time in a long time.

:thumbsup::thumbsup:

mordecai

Lexus revived the GX from imminent death.

Also, the LS topped the flagship sedan segment for the first time in a long time.

:thumbsup::thumbsup:

On the face of it, 5LS sales in July 2018 certainly topped the segment for the first time in a long time.
However, I'm not sure if 5LS "really" or "genuinely" topped the segment?

The current model Mercedes S Class debut in October 2013 with a whisker below 2,000 units/month.
In its first 12 months, the current model S Class averaged over 2,000 units/month.
Incredibly, in its first 46 consecutive months, the current model Mercedes S Class sales was ALWAYS sold in 4 digits [x,xxx] per month, and sales NEVER ever dropped to only 3 digits [xxx] per month.
Only on its 47th month did Mercedes S Class sales drop into 3 digits, ie 999 or less.
Since its debut in October 2013 and after 57 months on the market, the current model Mercedes S Class monthly sales has only ever dropped to 3 digits per month on two (2) occasions:
1) August 2017, and
2) July 2018.

If you think that the current model Mercedes S Class sales and popularity is stunning, just remember that the first four generations of Lexus LS's ALWAYS outsold the pants off the Mercedes S Class on debut.
The first four generations of Lexus LS's had a reputation for being an S Class killer.

The all new 5LS - I don't mind President Akio deliberately making it a "halo" low volume sports niche with a low center of gravity, and a front mid-engine layout for respectively lower and shorter cabin - and having the top selling RAV4, Camry, RX & 7ES subsidise the cost of 5LS production - however, IMO I do believe 5LS needs to be more attractively styled like the LF-FC to really turn heads, and be remembered as a classic halo model after nearly 12 years of development.
I realise that sedan are being replaced by SUV tall wagons, but apart from its domestic market of Japan, I'm sure that a more attractively styled 5LS could sell much better than what it is presently doing in export markets.

In the past, I believe that the LS stood "half-way" between the Mercedes S Class, and the unpopular low volume drop outs: like the 7 Series, A8, Jaguar XJ, Genesis G90 and the axed Infiniti Q45.
Now, I believe that the all new 5LS has joined the unpopular low volume drop outs, and that an intermediate between the acknowledged worldwide diplomat's benchmark Mercedes S Class no longer exists...

peterharvey

On the face of it, 5LS sales in July 2018 certainly topped the segment for the first time in a long time.
However, I'm not sure if 5LS "really" or "genuinely" topped the segment?

well it obviously did top the segment... you have harped on this over and over on CL, so yeah lets repeat it - LS is not very affordable anymore. It is an SUV world. They made it less boring, less of the luxury camry design of before - this wont suit everyone. How much did G90 sell? It is more similar vehicle to LS's of before at very low price. It sold only 117 units for July at $20k less than LS500 on average. So market has shifted.

In any case, they just announced they sold 17,490 in first 6 months. At these prices and market, it is a win. Due to these changes that you personally do not like, they sold a lot more in other parts of the world than in US, before it was mostly an US vehicle.

https://lexusenthusiast.com/forums/threads/lexus-mid-year-2018-global-sales-report.4654/#post-38227

Rob Grieveson

You are correct in Dubai the desert days out for tourists are mainly carried out in brand new Lexus LX! In Africa Lexus Brand is still finding its feet and is struggling to gain a meaningful hold into the market, however it is happening although relatively slowly and their remarkable trouble free reputation is gaining recognition. Vehicle range is rather limited and pricey. The Germans all very strong in this market and of course the Toyota Brand is our top seller but has a full range of models available by comparison with Lexus and up until recently the Corolla was manufactured in South Africa for export to Australia. The Toyota'bakkie' ( smaller trucks and the Fortuner) are now their best sellers.

There are plenty of markets where Toyota is a leading brand yet Lexus does not sell well... i dont think this will ever change really, not without those markets getting their GDP up significantly. Unlike BMW/MB/Audi, Lexus does not have to sell well everywhere. They keep their prices high regardless of the market, since they have Toyota's that they sell there. Another example is Thailand where Toyota is #1 and sells large number of vehicles, yet Lexus sells much worse than MB/BMW/Audi.

Rob Grieveson

You are correct in Dubai the desert days out for tourists are mainly carried out in brand new Lexus LX! In Africa Lexus Brand is still finding its feet and is struggling to gain a meaningful hold into the market, however it is happening although relatively slowly and their remarkable trouble free reputation is gaining recognition. Vehicle range is rather limited and pricey. The Germans all very strong in this market and of course the Toyota Brand is our top seller but has a full range of models available by comparison with Lexus and up until recently the Corolla was manufactured in South Africa for export to Australia. The Toyota'bakkie' ( smaller trucks and the Fortuner) are now their best sellers.

There are plenty of markets where Toyota is a leading brand yet Lexus does not sell well... i dont think this will ever change really, not without those markets getting their GDP up significantly. Unlike BMW/MB/Audi, Lexus does not have to sell well everywhere. They keep their prices high regardless of the market, since they have Toyota's that they sell there. Another example is Thailand where Toyota is #1 and sells large number of vehicles, yet Lexus sells much worse than MB/BMW/Audi.

Only some hardcore Lexus unenthusiasts would find a way to crap on Lexus when their monthly sales topped the competition. :thumbsdown:

No need to repeat the exact same posts over and over again, from forum to forum, thread to thread.

Only some hardcore Lexus unenthusiasts would find a way to crap on Lexus when their monthly sales topped the competition. :thumbsdown:

No need to repeat the exact same posts over and over again, from forum to forum, thread to thread.

I have to give the guy credit for pointing out the LS is no longer a heavyweight competitor to the S-Class. In the past it was S-Class, LS, and everone else. Now it's S-Class and everyone else. Or by some other standards, it's S-Class, Model S, and everyone else.

And it's not just about decreased affordability. Here in China MB sells more S-Class Maybach than the LS350 and 500h combined, by a long shot. We like to laugh at the so-called 'Pleb's Maybach' aka the S400 that greatly diluted the marque. But it is still twice as expensive as the 500h. The S-Class is now definitely in a league of its own and we just have to accept the fact that the LS is just a 'better someone else'.

peterharvey

On the face of it, 5LS sales in July 2018 certainly topped the segment for the first time in a long time.
However, I'm not sure if 5LS "really" or "genuinely" topped the segment?

The current model Mercedes S Class debut in October 2013 with a whisker below 2,000 units/month.
In its first 12 months, the current model S Class averaged over 2,000 units/month.
Incredibly, in its first 46 consecutive months, the current model Mercedes S Class sales was ALWAYS sold in 4 digits [x,xxx] per month, and sales NEVER ever dropped to only 3 digits [xxx] per month.
Only on its 47th month did Mercedes S Class sales drop into 3 digits, ie 999 or less.
Since its debut in October 2013 and after 57 months on the market, the current model Mercedes S Class monthly sales has only ever dropped to 3 digits per month on two (2) occasions:
1) August 2017, and
2) July 2018.

If you think that the current model Mercedes S Class sales and popularity is stunning, just remember that the first four generations of Lexus LS's ALWAYS outsold the pants off the Mercedes S Class on debut.
The first four generations of Lexus LS's had a reputation for being an S Class killer.

The all new 5LS - I don't mind President Akio deliberately making it a "halo" low volume sports niche with a low center of gravity, and a front mid-engine layout for respectively lower and shorter cabin - and having the top selling RAV4, Camry, RX & 7ES subsidise the cost of 5LS production - however, IMO I do believe 5LS needs to be more attractively styled like the LF-FC to really turn heads, and be remembered as a classic halo model after nearly 12 years of development.
I realise that sedans are being replaced by SUV tall wagons, but apart from its domestic market of Japan JDM, I'm sure that a more attractively styled 5LS could sell much better than what it is presently doing in export markets.

Normally, we don't bother with Mercedes-Benz sales in their domestic home market of Germany, because we know there is bias with Mercedes taxis everywhere.
In the same way, we understand that Lexus sales in their domestic home market of Japan is also subject to similar bias.
The United States on the other hand is a neutral third party market, and the biggest luxury motor vehicle market in the world.

In the past, I believe that the LS stood "half-way" between the Mercedes S Class, and the unpopular low volume drop-outs: like the 7 Series, A8, Jaguar XJ, Genesis G90 and the axed Infiniti Q45.
Now, I believe that the all new 5LS has joined the unpopular low volume drop-outs, and that an intermediate between the acknowledged worldwide diplomat's benchmark Mercedes S Class no longer exists.

Lexus is a great marque, and Lexus can hold its own, without having to be compared to the entry level Hyundai Genesis luxury division to justify Lexus' excellence.

A very interesting post with info regarding the sales of the S Class. I am inclined to agree for starters the LS really needs a V8 motor and whilst styling is always subjective the pic of the future model is very dramatic and probably more attention grabbing. Having said that the new LS IMO is a pretty good looking vehicle and possibly more so in the metal. My complaint with Lexus is that they always take so long to respond to sort out gaps in their range or to improve and modernize, obviously the plus of this is their enviable trouble free reputation - everything seems to be tried and tested thoroughly before put into production and one cannot argue against that. The one obvious flaw seems to be their version of BMWiDrive which has been universally complained about in every single road test, yet they persist with their touch pad system. Why?
My own experience with Lexus has been nothing short of positive have my second IS now and both have been solid good cars and possibly would not go back to Mercedes although also a good car the service arrangements are frankly not very good when compared to Lexus facilities.

peterharvey

The first four generations of Lexus LS's had a reputation for being an S Class killer.

Well, no, the LS had a reputation for being a boring large Camry with leather, especially in the 3LS era when it kind of was. All right-thinking people in this segment have *always* bought the S-Class, even though it's frequently overwrought to the point of ugliness, and even in this era where they'll have to step around piles of GLAs and GLCs with failing turbo 4s waiting for service. The circa-2000 3 Series (back when Motor Trend got letters every month complaining that they were on BMW's payroll) would kill for the kind of bulletproof cachet the S-Class has.

As one of the few people talking about the car who daily-drives it, I kind of like the 5LS's still-forming new reputation as a unique mix of driver's car and luxury barge. Or as a Quattroporte that doesn't break down.

PS: LF-FC or not, this car *does* turn heads in real life.

Ian Schmidt

As one of the few people talking about the car who daily-drives it, I kind of like the 5LS's still-forming new reputation as a unique mix of driver's car and luxury barge. Or as a Quattroporte that doesn't break down.

I think you nailed it. My June 2017 Kaizen Factor review of the Lexus GS F described it as "A 'tweener' supersedan" that fell between the "sport" versions of its E-segment luxury brand rivals and the full-on AMG/M/RS/V variants. The same, in a broader sense, could be said of Lexus' 5LS. Its hunchbacked fastback silhouette is reminiscent, more than anything else, of the original Porsche Panamera. The sportiness of its persona also seems to bridge a gap between the Panamera and Maserati Quattroporte on the sporty end and the more classically luxury feel of Mercedes S-Class, BMW 7-Series and Audi A8.

Likewise, the 5LS's sole non-hybrid powertrain option to date outside China, the 3.5-liter twin-turbo V35A-FTS likewise falls roughly in the middle of its rivals' myriad powertrain offerings. To hear some of the criticism, you'd think the new LS is a total snail compared to each and every one of its German and American rivals. It isn't.

LS did great up until the third year of the 4LS and thats when their sales really slipped.

Did the 4LS suddenly become a horrible luxury car in it's third year? No.

We all have to be honest with ourselves here, how much more sales would the LS have in this same extremely competitive luxury segment if the backseat were slightly longer, taller, and had a v8?

So the bottom line is, LS used to shine because everyone else sucked, thats why the industry praises the 1LS so much. Now LS shines less because everyone else is improving. Every time a new LS launches, we see so many complaints that it isn't groundbreaking like the 1LS, no that will never happen again, especially not in a segment where everyone puts their money into the flagship products. Things were a lot different in the 80s, folks.

Its already amazing as it is that the LS had a great run at nearly 20 years at the top of the game before anybody caught up in styling, tech, and build quality.

I'd argue that the LS is at least upper-tier if not leading on styling. The interior, even without the Kiriko glass, is like nothing else.

Fact versus Opinions?


Fact
The main point to understand is that sales is an objective and quantitative fact:
March 1008
April 999
May 908
June 789
July 712
Thus 5LS is certainly on the nose with the public.
Although some people certainly love the 5LS - that's certainly not how the mass public is actually feeling.

Someone must be prepared to talk about what some others don't want to hear.


Opinions
However, when we try to explain why the three digit sales figures at a time when the current S Class has sold for 57 consecutive months, 55 months of which has been at 4 digits/month, and only 2 months have been poor sales with only 3 digits/month - then we are dealing with personal/individual opinions.

For example, I am of the opinion that the rear quarter styling heavily affects sales.
Whereas someone else may be of the opinion that the sporty design with a compact interior to be the main reason for 3 digit sales/month.
Or Joaquin or someone else may attribute low sales due to a lack of V8 etc.

These are all opinions.


Subjective Opinion to Objective Fact Conversion
Lexus will be obtaining feedback from both 5LS customers and non-5LS customers.
Why? Because feedback from 5LS customers only, results in biased data.
Meanwhile feedback from non-5LS results in biased data - but in the opposite direction.
Thus, to have fair and non-biased data, Lexus must survey and feedback ALL.

The individual/personal opinions are actually added together, and then averaged out - to produce a single objective mean [average] - from which to develop both the mid-life updated 5.5LS and the next generation 6LS.