Lexus President Concerned with Brand’s Global Positioning

key takeaway we need to attract younger buyers into the brand. 60 avg age of owner in the usa
its differnt and lower elswhere
what brands attract young buyers
what type of vehicle attracts young buyers?

Lexus International president Yoshihiro Sawa is unsatisfied with the brand’s global position — from an Automotive News with Hans Greimel:

“Considering global sales volume, Lexus is still small,” Sawa said. “We have to compete with our limited volume. That is our difficulty.”
But Lexus is also struggling with a brand image that varies by market, Sawa said. In some markets, especially in Asia, Lexus is seen as a hip brand for young people. But not so much in others. In the U.S., Lexus enjoys high customer loyalty, but its average customer is in their 60s, Sawa said. In China and other Asian markets, the average customer age is in the 30s.
“They are completely different customers,” Sawa said. “We have to provide the same kind of brand image campaign, but we have to be careful about each nation’s activities.”

Herein lies the rub for the Lexus — momentum is starting to build in China, and releasing...

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"we really want our customers to feel our cars are not boring to drive" at the same time "no F cars because they are expensive to make, by the way no GS for you even though our parent company is already making one"
"we want our hybrids to have an image of both efficient and powerful". RAV4 has a 302hp PHV version while NX still uses a hybrid system from 2010.
"we really get this message that GX buyers care about offroading". The GX is a decade old and has no offroad-oriented version.
"we are very very committed to an electrified future". There is still no Lexus PHV or FCV. Only three BEVs are planned in five years.

Here's an easy advice for Sawa-san: be consistent with what you say and what you do. Then be committed to a strategy and go for it. Design products proactively instead of reactively.

If they even had half the commitment and consistency of Hyundai Genesis they would be in a much better position around the globe.

ssun30 said:

"we really want our customers to feel our cars are not boring to drive" at the same time "no F cars because they are expensive to make, by the way no GS for you even though our parent company is already making one"
"we want our hybrids to have an image of both efficient and powerful". RAV4 has a 302hp PHV version while NX still uses a hybrid system from 2010.
"we really get this message that GX buyers care about offroading". The GX is a decade old and has no offroad-oriented version.
"we are very very committed to an electrified future". There is still no Lexus PHV or FCV. Only three BEVs are planned in five years.

Here's a good way to start: be consistent with what you say and what you do. Then be committed to a strategy and go for it. Design products proactively instead of reactively.

If they even had half the commitment and consistency of Hyundai Genesis they would be in a much better position around the globe.

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THANK YOU! I swear to god we gotta start sending some emails collectively and flood their messages. Toyota listened for the AWD Camry and Avalon, I'm sure we can do the same too.

Yeah I agree! I love this company and I am late 20s. But I’m worried after my GS lease is up on two years what the hell do I get? Or what options do I have? I don’t want an ES (unless they add F!) and I prolly can’t afford an LS next. So I get an IS that is too small or leave rt? Those aren’t options that excite me especially for someone that is loyal and wants to stay with Lexus.

I'm a young leaser(20+) who leased the Lexus ES350 2019 this year. I admit that the young and aggressive looking but also comfortable driving experience makes me choose ES350. Why not IS? Well, I like tech and ES350 brings the Apple CarPlay so I am in.
In my opinion, technology will become an influential part of the definition of luxury cars (at least for me tho). Advanced technology, especially safety tech, is one important factor to choose a car I enjoy driving every day. However, it seems Lexus is always behind other competitors which sometimes makes me disappointed. Yes, they reacted again and finally brings CarPlay and Android Auto but they cannot always act like that since customers cannot wait all the time.
I am not asking Lexus to become the most-techy car company but at least catching up on the mainstream of technology.

I agree with Sawa san.

Take Italy where I come from.

Is a mess.

No consistency on ads, no consistency in line up, no consistency on service (they close most of the historical dealers and put the service and sales into Toyota dealers with a dramatically decrease of professionalism and competence), people still ask if my IS is a Hyundai, people still ask where is the plug in to charge the CT of my wife or if the car is convenient, “after all my diesel Mercedes is very comfort and smart”.

And so on.

Yes mostly Italians is not open minded, they are still thinking Alfa Romeo is a great brand like in the past, they confuse Japanese with other Asian countries and so on, but for sure Lexus Italy is totally confused.

And Lexus Japan, it’s clear, abandoned them.

Or, worst, they don’t care.

For sure, with the actual situation in Italy, after being customer from 15 years, with 4 IS and 2 CT, I am worried what will be my next car n 2021 when the lease end.

CrisB said:

I agree with Sawa san.

Take Italy where I come from.

Is a mess.

No consistency on ads, no consistency in line up, no consistency on service (they close most of the historical dealers and put the service and sales into Toyota dealers with a dramatically decrease of professionalism and competence), people still ask if my IS is a Hyundai, people still ask where is the plug in to charge the CT of my wife or if the car is convenient, “after all my diesel Mercedes is very comfort and smart”.

And so on.

Yes mostly Italians is not open minded, they are still thinking Alfa Romeo is a great brand like in the past, they confuse Japanese with other Asian countries and so on, but for sure Lexus Italy is totally confused.

And Lexus Japan, it’s clear, abandoned them.

Or, worst, they don’t care.

For sure, with the actual situation in Italy, after being customer from 15 years, with 4 IS and 2 CT, I am worried what will be my next car n 2021 when the lease end.

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I am actually thinking to get the Tesla Model 3/Y or lease the BMW : D

zetelight said:

I am actually thinking to get the Tesla Model 3/Y or lease the BMW : D

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Tesla is also on my mind

zetelight said:

I am actually thinking to get the Tesla Model 3/Y or lease the BMW : D

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If you are specifically leasing a car get a BMW 540i and higher or a Mercedes-Benz E450 and higher. You won't have to pay for repairs and you will enjoy every moment of it!

I agree with him in my country South Africa Lexus is a niche and low volume seller. People perceive it in the supercar money category. But the opposite is true for BMW or Merc and consumers here have this belief in German engineering as superior to Japanese. That just baffles me.

F1 Silver Arrows said:

THANK YOU! I swear to god we gotta start sending some emails collectively and flood their messages. Toyota listened for the AWD Camry and Avalon, I'm sure we can do the same too.

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I'm in!

Lexus mini Van would certainly attract younger buyers , at least many would be child bearing years

that has to be at least 20 years younger than current buyers

CT200h said:

key takeaway we need to attract younger buyers into the brand. 60 avg age of owner in the usa
its differnt and lower elswhere
what brands attract young buyers
what type of vehicle attracts young buyers?

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when i was in my 20-30 age range, no way in hell i could afford any lexus. costs too much. Im about to buy an RX now for freaking$61k. The entire auto market is way too expensive.

Many people, who can afford (because they've been waiting patiently on the sidelines) and are willing to pay the price premium ($10-20k from base ICEV models) want no (okay, I'll be realistic, few) compromise BEVs. I think if Toyota releases five Toyota's and three Lexus'es by 2025, they can gauge what the demand is for its BEVs.

I'm definitely holding off until 2025 (could be earlier if any of our two Honda ICEVs or RAV4H gets to the point of expensive repairs but I doubt it) and see what Lexus has to offer.

Surprised Toyota can't see the writing on the wall. I know this is just California but but but

The Tesla Model 3 is the #3 best-selling car model with just a small gap to #2!

1. Honda Civic - 58,967
2. Toyota Camry - 48,760
3. Tesla Model 3 - 48,483
4. Honda Accord - 43,709
5. Toyota Corolla - 40,928

For people who are leasing, of course they will pick German cars over Lexus ones because the effective monthly payments are typically lower for the Germans. Most people who lease will lease the latest and greatest and so far the IS, NX, among others, are already due for a full-blown refresh and it would be ludicrous to lease an IS or NX this year or next.

Offer something close to the Model 3 and Model Y, add even the most primitive torque vectoring system (not even a third electric motor) and now we're talking.

Honestly, as a huge Lexus fan, I have to agree with a lot of people: I am disappointed in this brand. Also, I think this is a good post to kind of vent on, so here I go:
In 2012, Lexus introduced the spindle grille on the 2013 GS. With that, Lexus transformed the brand into a much a more uniformed, desirable company. Let's be real: Lexus has always been able to compete with the Germans while Acura and Infiniti could never (I mean Infiniti is on the verge of being completely dismantled soon due to abysmal sales), but they still fall short. Have we ever seen the IS beat the 3 Series or CClass? Anyways, Lexus soon introduced sportier vehicles like the RC, RCF, LC, and F Sport variants across almost all models including their crossovers. They were really trying to change their image.
With all this, Lexus also announced it would distance themselves from Toyota. Reading this, in my opinion, was one of the best things that could have happened to Lexus. Lexus fans could stop relying on a Toyota redesign to initiate a Lexus redesign. At the time, I thought it meant Lexus would start making much more fun to drive cars and not a sporty-looking RX that drives like a Highlander. And I thought we could FINALLY stop hearing "that Lexus is just a luxury Camry." Boy, did that change when Toyota slapped a freaking spindle grille on it.
Basically what I am saying is that Lexus had so much potential to keep being great, and then something happened: Toyota STILL got priority. RAV4 gets a redesign (a gorgeous one let me add - probably because it looks super NX-like) and a "Prime" version while the NX redesign has been delayed and has, of course, a dated hybrid engine. The GS, a staple (in my eyes - maybe yours too) to Lexus, has been begging for a new look and engine; the facelift it received in 2016 (I think) was SUPER disappointing (sorry, but the base grille design is kind of ugly), but will we get a new one? No, Toyota got it with the Mirai. The problem with that is that Toyota thinks people in the GS market will stop and think "oh, I'll just get that atrocious-looking Toyota since it's the same thing." Not the case at all. My parents were going to wait for the next GS, and when I told my dad that the project was headed for the Mirai only, he decided to look into the ES FSport. People want the Lexus badge. Not a Toyota badge with a Lexus interior. Toyota just does not understand that, and because of that, they are eliminating popular Lexus models, and I love Akio as much as the next car guy, but just because he doesn't love the GS, doesn't mean other people hate it too. Personally, when I think Lexus, I think GS as one of the top models. I mean last generation was ICONIC in design. Absolutely timeless.
Another issue I have is, and sorry for bringing in competitors, is the inconsistency of styling. I am sorry to say this, but why does the Mercedes GLA look really nice (I mean it's not the best looking Benz but still decent) and it's getting a redesign soon, and our brand new UX is really bland. I am sorry to anyone who owns the UX. I am not trying to bash it, but the concept was so nice, and it's so boring looking. The interior as well is so blah. Mercedes and Audi have these futuristic interiors and we are following the BMW trend of kind of keeping the same looking interiors with the new generation. BUT then we move to the stylings of the LC, LS, and hey, I'll even throw Mr. bread and butter ES in there. They are gorgeous to look at (well, I do wish the ES interior didn't look like the last gen RX's). But this is what I mean: you can have a different range of vehicles, yes. You can have your "lower" end ones: UX, CT; your "higher" end ones: LS, LC; but you don't have to make your lower end ones look like lower end vehicles. Audi and Mercedes have these "lower" end models, but they are still striking in design. Personally, I love the new Audi A1 - it's a cheaper Audi, but it still looks like it comes from the same family as the A7. If I knew nothing about cars and you told me the UX and LC were from the same brand, I would not believe you.
Overall, I really think Lexus is still a top competitor to these German brands that always have seemed to dominate, but I think in a way, they are falling behind. Something needs to be changed asap. I do not want to see the GS go. Then the RC. Then the IS. Then the GX. Then the LS. These are great models. They just need some attention. Please, Lexus! Don't become Infiniti. Their sales were down almost 50% (I think they sold like 4k models in September or something), and they had to be pulled from Australia.
Feel free to disagree! I know I have strong opinions here!

Even our 4th gen RAV4 comes with a touch screen infotainment system.

From Alex on Autos, it seems Lexus seats only get 7-8/10 while Germans get 9-10/10, and fuel economy (mostly NA so smoother though) is really near the bottom of the pack except for the hybrid versions. Believe or not, when you are getting older, seat ergonomics is going to be one of the major selling points especially for those with back or butt pains.

and Savageese, reiterates the Lexus infotainment as being the major turn off on a Lexus vehicle

I think Lexus fixed the infotainment system on the 2020 RX.

Anyway, not really complaining but just pointing out what the low points on Lexus vehicles are. I don't care much about the abundance of soft plastic unless around potential touch points if Lexus can lower the MSRP by $1k.

2020 RX has an improved entertainment system using a Touch screen ( moved forward on the dash closer to the driver)
but still retains the touchpad. They also added Apple carplay which was a major issue with clients on 2018 and previous model year RX's.

internalaudit said:

From Alex on Autos, it seems Lexus seats only get 7-8/10 while Germans get 9-10/10, and fuel economy (mostly NA so smoother though) is really near the bottom of the pack except for the hybrid versions.

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That's honestly the first complaint I've ever heard about Lexus seats. Fuel economy I'll agree with.

internalaudit said:

Anyway, not really complaining but just pointing out what the low points on Lexus vehicles are. I don't care much about the abundance of soft plastic unless around potential touch points if Lexus can lower the MSRP by $1k.

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If I understand correctly, the beef is more that lower-priced Toyotas actually have better materials in some instances.