Lexus Sales in China Increase by 22% in 2017

krew

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Lexus Sales in China Increase by 22% in 2017

18-01-08-lexus-es-china.jpg


A total of 132,900 units sold.
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maiaramdan

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Guess whom will take the global title
Of course not Toyota but I think not VAG also maybe RNA
 

LDeleuran

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I believe it will be Nissan-Renault-Mitsubishi that takes the global title pushing around 11mil units. VAG takes second and Toyota third.


The Chinese numbers are worth celebrating in isolation, but this has to be put into perspective of the German competition. Audi, BMW and Mercedes have also had growth in this market.

Here are the numbers. Please note that the sales are without December 2017:
Audi:
2016: 509226
2017: 518228
+1.7% (Remember this is without December sales, and so are those below!)

BMW:
2016: 310000
2017: 349300
+13%. If we add 30.000 sales for December, BMW also posts 22% growth.

MB:
2016: 326690
2017: 404169
+23.7%. Add 35000 units for December and MB has increased its sales with more than 34%!
 

ssun30

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BBA are not pure luxury brands in most of the world outside North America. There are many 'pleb models' that contribute to a lot of growth. Lexus doesn't have these 'pleb models': they are called Toyota. If we take these out of the equation, MB is perhaps the one that truly shines with dominant presence in the high-value segment.

The strength of the ES is a living example of how much the badge is worth. A top-trim Camry is better in every respect than the ES200 (the entry-level ES even has cloth seats when the Camry offers reclining rear!) yet the ES200 became a surprise hit.
 

mikeavelli

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They have to be super happy with this growth. I want to say just a few years ago they were stuggling.

2011 Sales were 49,000
https://lexusenthusiast.com/2011/03/29/looking-at-lexus-sales-in-china/

2015 Sales were 88,000
http://www.autonews.com/article/20160202/GLOBAL/160209978/lexus-reports-record-global-sales-in-2015;-aims-higher-in-2016

2016- 109,151
https://lexusenthusiast.com/2017/02/07/lexus-sets-global-sales-record-in-2016/

2017- 132,900

That is some serious growth in two years! Also note how the Germans have grown.
 
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Lexus has more China-centric models coming. Ze Germans have been there for awhile, so they had the head start.
 

spwolf

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Lexus has more China-centric models coming. Ze Germans have been there for awhile, so they had the head start.

these re very good numbers, i guess nxt up is finally Lexus factory in China?

Import taxes are high, local production fo tnga platform would be beneficial.
 

ssun30

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these re very good numbers, i guess nxt up is finally Lexus factory in China?

Import taxes are high, local production fo tnga platform would be beneficial.

It will be an ugly battle between FAW and GAC for production rights I guess. So far the two lives in peaceful coexistence by mutually conceding market segments. The Lexus deal will probably escalate into something like the DFW-GAC rivalry where the two Hondas try hard to kill each other.

I personally have no problems with NX/ES made in China, seeing how GAC makes a higher quality Camry than TMMK which also produces the NA-spec ES. Lower labor cost, no union presence, and higher vehicle prices means less pressure to cut costs like TMMK faces right now.
 

krew

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these re very good numbers, i guess nxt up is finally Lexus factory in China?

Import taxes are high, local production fo tnga platform would be beneficial.


Absolutely agree -- these are good numbers considering Lexus imports all vehicles instead of building locally. To make a bigger impact, local production is a must.

Even so, I still think it will be some time before we see China-built Lexus vehicles.
 

Ian Schmidt

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Yeah, quality will be a concern for locally-built China Lexuses. Apple and others have proven you can get top-notch quality out of China if you keep a good eye on them; Toyota is likely stocking up on good eyes as we speak.
 
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Absolutely agree -- these are good numbers considering Lexus imports all vehicles instead of building locally. To make a bigger impact, local production is a must.

Even so, I still think it will be some time before we see China-built Lexus vehicles.
They just need to address the local market first. If there is a China plant, I doubt they need to export any local production outside of the home market.
 

Joaquin Ruhi

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...and Lexus has even higher expectations for the 2018 sales numbers in China. Here's what Reuters has to say:

Toyota's Lexus aims to grow China sales 23 pct in 2018 -sources
Norihiko Shirouzu

BEIJING, Jan 23 (Reuters) - Toyota Motor Corp’s premium brand, Lexus, is targeting to grow sales in China by 23 percent this year to 160,000 vehicles, according to two individuals familiar with the matter.

The targeted volume compares to last year’s sales of about 130,000 vehicles, an increase of about 19 percent from 2016.

The Lexus insiders, who asked not to be identified because they are not authorized to speak with reporters, said the goal to boost sales to 160,000 vehicles was an internal objective, rather than a publicly stated one.

“We are treating this as a ‘must-achieve’ goal, and we have described it internally as such,” one of them said.

A Toyota spokesman in Beijing declined to comment.

https://www.reuters.com/article/idUSS6N1O500T
 

mikeavelli

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No way it can surpass the USA, not without new factory that can produce multiple TNGA models like ES, NX, RX.

I think USA might be topped off around 300k...330k was their record.... if China continues growing at 15-20% a year they will pass the USA sooner than later. Which means Lexus has got to be having some serious meetings on increasing production capacity.
 

spwolf

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I think USA might be topped off around 300k...330k was their record.... if China continues growing at 15-20% a year they will pass the USA sooner than later. Which means Lexus has got to be having some serious meetings on increasing production capacity.

Yeah, but it wont grow like that with imported models forever... they will need to build a factory to grow more. They are probably waiting for at least 100k from certain models before they will build a factory. It also might need NX and RX to move to TNGA platform so they can be built in the same factory.
 

ssun30

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The new ES could already share TNGA factory with GAC Camry. Remember FAW is also planning on retooling its Crown/Reiz plant to accomodate TNGA-K (for the rumored Avalon introduction). In fact Toyota's chinese factories are among the earliest ones worldwide to move to TNGA: GAC/Toyota's No.2 plant finished retooling about the same time as TMMK did. And the new No.3 plant is constructed and ramping for C-HR production. Next up FAW will update the RAV4 plant for TNGA as well.

So yeah, there will be plenty of capacity for TNGA vehicles in China in the reasonable future. Lexus technically does not need any new factory for local production, just like how TMMK managed to squeeze in the ES to utilize spare Camry capacity. GAC/Acura, DFW/Infiniti, CAG/Lincoln use the Honda/Nissan/Ford facilities as well.

I'm strongly convinced that Lexus China is going to push for local production, and a formal annoucement at Beijing Auto Show. ES might be their first step, but a (very) good one. Crossovers will follow once NX/RX receive the TNGA remodel. UX could be ready in no time and will be a very strong entry-level product. If I was a Lexus China executive I would set similar high targets.
 

spwolf

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I'm strongly convinced that Lexus China is going to push for local production, and a formal annoucement at Beijing Auto Show. ES might be their first step, but a (very) good one. Crossovers will follow once NX/RX receive the TNGA remodel. UX could be ready in no time and will be a very strong entry-level product. If I was a Lexus China executive I would set similar high targets.

while you are right that building extra line will be cheaper overall, but they build them separately. Investment ends up about the same as if completely new plant is built, it is in separate building and they use different processes:
https://www.reuters.com/article/us-...ion-of-lexus-es-by-2015-idUSBRE93I0QI20130419
 

mmcartalk

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Yeah, quality will be a concern for locally-built China Lexuses.

Buick manages to produce the Envision SUV in China (which is imported and sold here in the U.S.) without any problems. I've seen and reviewed the Envision, and it seems screwed together just as well as anything I've seen from Japan or Korea. The only issue I've encountered (which other reviewers have also noticed) is an odd smell inside....not the typical new-car smell by any means.
 

ssun30

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while you are right that building extra line will be cheaper overall, but they build them separately. Investment ends up about the same as if completely new plant is built, it is in separate building and they use different processes:
https://www.reuters.com/article/us-...ion-of-lexus-es-by-2015-idUSBRE93I0QI20130419

FAW and GAC are state-owned companies and are thus less sensitive to cost: the losses are absorbed by the state. It's common for state-owned auto makers to overbuild facilities for future expansion, therefore most of the upfront cost has already been spent. GAC/Toyota Plant 3 is rated for 220k vehicles per year, do you think they are going to really make that many C-HRs?