Lexus Sales Climbing in China

[krew]

krew

Lexus China sales were up 45% in January.

View the original article post

 

[mikeavelli]

Interesting stats on the ES. The Germans introduced a slew of "LWB" cars for the China market, including a new LWB BMW X1 (I know lol wut) but they are hits there. Interesting Lexus ES does not offer it but rear seat space is great.

 

[spwolf]

i think it has to do with pricing and comfy ride, so it gets used as executive limo there.

Rise is likely due to RX, which is big seller for Lexus worldwide as usual... good numbers, too bad for earthquake slashing their production.

 

[Sabelo]

This is good, especially if China buys into Lexus and their products, that means potentially new models and lineup expansion, subsequently spreading to other markets.

 

[Joaquin Ruhi]

The Germans introduced a slew of "LWB" cars for the China market, including a new LWB BMW X1 (I know lol wut) but they are hits there. Interesting Lexus ES does not offer it but rear seat space is great.

In a sense, Lexus did create a LWB ES for all markets when, for the 6th generation, it went from being Camry-derived to Avalon-derived. As I noted back in 2012 ( http://kaizen-factor.com/lexus-es-gets-the-ponce-de-leon-spa-treatment/ ):

In a marvel of space efficiency, while the wheelbase has grown 1.8″ and overall length has stretched by just 1″ versus the previous ES, rear seat head, knee and legroom have all increased, the latter by a whopping 4.1″, essentially matching the length increase of many of the Germans’ (and the Jaguar XJ’s) short-vs-long-wheelbase offerings. Does this come at the expense of front seat legroom or trunk space? Front seat legroom did see a nominal decrease (from 42.2″ to 41.9″), as did front hip room and rear shoulder room. Trunk space, on the other hand, is also larger, growing from 14.8 cubic feet in the previous 5th-gen ES to 15.2 in the new ES 350...Overall EPA passenger volume grows from 95.4 cubic feet in the previous ES 350 to 100.1 cubic feet in the new generation...

 

[mikeavelli]

In a sense, Lexus did create a LWB ES for all markets when, for the 6th generation, it went from being Camry-derived to Avalon-derived. As I noted back in 2012 ( http://kaizen-factor.com/lexus-es-gets-the-ponce-de-leon-spa-treatment/ ):

Since there is no SWB, I don't consider it a LWB. I would assume a LWB version would be even longer. I do get the jest of what you are saying though.

 

[Joaquin Ruhi]

Since there is no SWB, I don't consider it a LWB. I would assume a LWB version would be even longer. I do get the gist of what you are saying though.

Very true.

Going off on a bit of a tangent here, Cadillac recently stated that, for the future successors of the present ATS and CTS (CT3 and CT5?), they would no longer be playing the Chinese game of offering SWB and LWB versions, but only a single worldwide "right-sized" length that would probably fall in between their current SWB and LWB lengths - precisely what Lexus did with the ES since the 6th-gen's launch. As an aside, the rear legroom figure for the current ES is very close to that of the current LWB Lexus LS.

 

[mikeavelli]

Very true.

Going off on a bit of a tangent here, Cadillac recently stated that, for the future successors of the present ATS and CTS (CT3 and CT5?), they would no longer be playing the Chinese game of offering SWB and LWB versions, but only a single worldwide "right-sized" length that would probably fall in between their current SWB and LWB lengths - precisely what Lexus did with the ES since the 6th-gen's launch. As an aside, the rear legroom figure for the current ES is very close to that of the current LWB Lexus LS.

I've heard rumors of a LWB GS.....even for the American market....

No one knows it exists but the LWB Q70 is easily the way to go in their range. Tons more room in the back. I find myself more and more struggling with the overall point of a mid-size sedan with a tight rear....

 

[meth.ix]

I've heard rumors of a LWB GS.....even for the American market....

No one knows it exists but the LWB Q70 is easily the way to go in their range. Tons more room in the back. I find myself more and more struggling with the overall point of a mid-size sedan with a tight rear....

Isn't it called the Q70L? And what would be the difference between the LS and GS LWB in terms of wheelbase?

 

[Joaquin Ruhi]

Going back to the gist of the article that started this thread, I just stumbled upon a Gasgoo.com article discussing China luxury car brand sales for the first 4 months of 2016 ( http://autonews.gasgoo.com/china-news/the-sales-of-luxury-brands-in-china-for-the-first-160525.shtml ). Here's what they have to say about Lexus:

...the sales of Lexus stood at 32,509 units, up by 40.1% against last year, boosted by its ES, NX and RX. To be more specific, the sales of its ES totaled 9,400 units, accounting 44% of the company’s total sales.

And here's an overall sales ranking of luxury car brand sales in China for January thru April 2016:

1) Mercedes-Benz (including Smart) - 147,907 (+ 40.5% vs Jan-Apr 2015)
2) Audi - 188,906 (+5.8%)
3) BMW (including Mini) - 162,221 (+6.0%)
4) Jaguar/Land Rover - 37,099 (+16.6%)
5) Lexus - 32,509 (+40.1%)
6) Cadillac - 27,698 (+9.2%)
7) Volvo - 23,922 (-0.5%)
8) Infiniti - 11,310 (-2.9%)

NOTES, THOUGHTS and COMMENTS:

- It is unclear if Rolls-Royce is included in the BMW numbers. Mercedes' are probably helped some by Mercedes-Maybach devolving into a glorified trim level, as opposed to a stand-alone brand like it used to be.

- Speaking of Mercedes, its 40.5% growth over the same period in 2015 is the highest of the lot, propelled primarily by the CLA 4-door coupe, C-Class sedan and GLC crossover. The latter two are locally built by Beijing Benz.

- All the more impressive is Lexus' 40.1% growth, only a couple of tenths below Mercedes', and achieved without a single Chinese-built model (the only one of the luxury top 8 for which this claim can be made).

- Although the precise split between the 2 brands is unclear, if Jaguar and Land Rover sales were broken out separately, they would probably propel Lexus into the #4 spot in China.

- Contrary to its stodgy, aging reputation in the U.S., Cadillac's XTS large FWD-centric sedan saw sales more than double, showing a 112% increase (it is unclear if this was for the whole Jan-Apr period or for April alone). Also, the just-launched XT5 crossover already sold 1863 units in April in China.

- Infiniti's China sales performance can only be described as pathetic. Q50L sedan sales only stood at 433 units, down by 74%, while the sales of the QX50 crossover only totaled 150 units, down by 82.4%. (To add insult to injury, the article keeps referring to the brand as Infinite. Infinite downward spiral, perhaps?)

 

[krew]

And here's an overall sales ranking of luxury car brand sales in China for January thru April 2016:

1) Mercedes-Benz (including Smart) - 147,907 (+ 40.5% vs Jan-Apr 2015)
2) Audi - 188,906 (+5.8%)
3) BMW (including Mini) - 162,221 (+6.0%)
4) Jaguar/Land Rover - 37,099 (+16.6%)
5) Lexus - 32,509 (+40.1%)
6) Cadillac - 27,698 (+9.2%)
7) Volvo - 23,922 (-0.5%)
8) Infiniti - 11,310 (-2.9%)

The success of the German 3 in China is staggering, especially Audi. It's a real catch 22 situation for Lexus, as they don't have the volume to justify local manufacturing, which in turn means they can't reach necessary volume. Even so, I can't believe Toyota didn't just bite the bullet and invest in local Lexus production ten years ago -- they would be up in the 100,000+ sales range as well.

 

[Born2Drive]

Going back to the gist of the article that started this thread, I just stumbled upon a Gasgoo.com article discussing China luxury car brand sales for the first 4 months of 2016 ( http://autonews.gasgoo.com/china-news/the-sales-of-luxury-brands-in-china-for-the-first-160525.shtml ). Here's what they have to say about Lexus:



And here's an overall sales ranking of luxury car brand sales in China for January thru April 2016:

1) Mercedes-Benz (including Smart) - 147,907 (+ 40.5% vs Jan-Apr 2015)
2) Audi - 188,906 (+5.8%)
3) BMW (including Mini) - 162,221 (+6.0%)
4) Jaguar/Land Rover - 37,099 (+16.6%)
5) Lexus - 32,509 (+40.1%)
6) Cadillac - 27,698 (+9.2%)
7) Volvo - 23,922 (-0.5%)
8) Infiniti - 11,310 (-2.9%)

NOTES, THOUGHTS and COMMENTS:

- It is unclear if Rolls-Royce is included in the BMW numbers. Mercedes' are probably helped some by Mercedes-Maybach devolving into a glorified trim level, as opposed to a stand-alone brand like it used to be.

- Speaking of Mercedes, its 40.5% growth over the same period in 2015 is the highest of the lot, propelled primarily by the CLA 4-door coupe, C-Class sedan and GLC crossover. The latter two are locally built by Beijing Benz.

- All the more impressive is Lexus' 40.1% growth, only a couple of tenths below Mercedes', and achieved without a single Chinese-built model (the only one of the luxury top 8 for which this claim can be made).

- Although the precise split between the 2 brands is unclear, if Jaguar and Land Rover sales were broken out separately, they would probably propel Lexus into the #4 spot in China.

- Contrary to its stodgy, aging reputation in the U.S., Cadillac's XTS large FWD-centric sedan saw sales more than double, showing a 112% increase (it is unclear if this was for the whole Jan-Apr period or for April alone). Also, the just-launched XT5 crossover already sold 1863 units in April in China.

- Infiniti's China sales performance can only be described as pathetic. Q50L sedan sales only stood at 433 units, down by 74%, while the sales of the QX50 crossover only totaled 150 units, down by 82.4%. (To add insult to injury, the article keeps referring to the brand as Infinite. Infinite downward spiral, perhaps?)

Good post! China is and will be a huge market for luxury car brands for a long time. Lexus needs to do something more specially for that local market, but shouldn't count on the market in China the same as North America.

1) Mercedes is always the 3rd player in China. But thinking their base number is already quite high, 40% growth is stellar. Mercedes is still the biggest brand in cars for average people, many just want the 3-pointed star on their hood so bad. And, current patch of vehicles are quite a improvement inside out. CLA 4-door coupe, C-Class sedan, E-Class sedan and GLC crossover are all made in China, most are local LWB version. But, Maybach today is totally in the different class with Rolls-Royce, most people don't look at that high anyway.
2) Audi is the godfather in China. VW group has special relationship with governments there. They started to assemble cars since last century, at that time China was still poor, no other luxury brands thought they could be like today. Audi invented small turbo 4 in luxury cars and the tax-policy for cars in China just follows their route. They also invented the LWB cars in local Chinese market long time ago. A6L has been the definition of government officials' vehicle there for decades, and they also shift the notion to the personal buyers smoothly. A4 and Q5 both are LWB there, are popular family vehicles. A8L though imported, is the 1st car in that class sporting a 4 cylinder engine there. Now, most competitors follow Audi's way, their advantage gap is shrinking to minimal level. Still, Audi and VW know Chinese market the best, and will be the leading player there for may years.
3) BMW came in the 2nd place for many years. They build their factory there after Audi before Mercedes. They probably even a little more successful (than Audi) in personal buyers after making LWB 3s (they have 316L there, and this thing is roomier than 5 serials in NA). Imported vehicles like X5 have 2.0T there. This brand seems to have more potential.
4) Jaguar/Land Rover sold the most vehicles in Range Rover. It is the symbol of high end SUV. Jaguar doesn't do well.
5) Lexus has great growth, especially thinking about the anti-Japan sentiment in China. Lexus should be satisfied with what achieved there. ES has 2.0 engine now, and it is priced half as a decade ago. The 2.0T in the engine bays surely push open the glass door of import vehicles easier. However, I gotta to say Lexus is a niche brand there. Some people look for the refined, dependable, imported vehicles in China. Still, a long way to go head to head with established Germans. Lexus needs to find its own way in China, and shouldn't count on that market too much because of the childish relationship between two country governments.
6) GM has a great marketing team in China, thinking about what products they have.
7) Volvo had some good years of growth after Chinese owns the brand. But, their products are old now, and they haven't figured out how to sell their best vehicle - XC90 (still imported).
8) Infiniti pathetic? That is b/c you haven't seen Acura there yet. I don't know the meaning of those brands down there. Maybe they should fold down globally?

 

[krew]

krew

Sales in August up 70%, and the brand is well on target for 100k sales in China.

View the original article post

 

[mikeavelli]

If this pace continues in China Lexus could hit 1 million sales a year in the next few years....

 

[Axel]

Lexus will move up to 2nd 3rd faster then you think. Audi BMW are cool but are now kinda lost when it comes to designs. New lexus cars that are made on this new platform can be refreshing. New LS and CT/crossover alone can send the brand buzzing

 

[Travis]

Saw a LC500 uncovered today

 

[Lexus Cohen]

Saw a LC500 uncovered today

Very nice!

 

[Joaquin Ruhi]

And here's an overall sales ranking of luxury car brand sales in China for January thru April 2016:

1) Mercedes-Benz (including Smart) - 147,907 (+ 40.5% vs Jan-Apr 2015)
2) Audi - 188,906 (+5.8%)
3) BMW (including Mini) - 162,221 (+6.0%)
4) Jaguar/Land Rover - 37,099 (+16.6%)
5) Lexus - 32,509 (+40.1%)
6) Cadillac - 27,698 (+9.2%)
7) Volvo - 23,922 (-0.5%)
8) Infiniti - 11,310 (-2.9%)

I haven't found a similar listing for the full 2016 calendar year, but a Reuters article ( http://www.reuters.com/article/us-g...gn=Feed:+reuters/businessNews+(Business+News) ) says that, with double-digit post-April growth (nearly 50%) Cadillac leapfrogged Lexus to become China's 5th-best selling Luxury brand.