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China is doing really good
July:
bestsellingcarsblog.com
July:
China imports July 2020: Audi (+134.6%), Nissan (+101.8%), Mercedes (+61%) help tilt market up 8.4%
The Audi Q8 breaks into the Top 20 imports for the first time in July. After a logical slump last month due to unusually high year-ago volumes, the Chinese imports market bounces back up 8.4% year-…
bestsellingcarsblog.com
NX suffering from cannabalization from discounted RX300. They really need to fix the pricing structure...
Now Lexus is the king of ¥300-400k. There's better a plan to attack the ¥400-500k market and secure the ¥200k-250k market, both are BBA's stronghold at the moment.
Now Lexus is the king of ¥300-400k. There's better a plan to attack the ¥400-500k market and secure the ¥200k-250k market, both are BBA's stronghold at the moment.
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Another embarrassing month for Cadillac. An brand new entry-level sedan selling only 1281 a month is a disaster. The ES is now outselling CT4/5/6 combined by 30%, and that's with a ￥70k discount on the CT6. It's pretty clear why Lexus is not seriously investing in IS/GS at all... (I still believe no IS-L is a big missed opportunity and they shouldn't leave the entry-level sedan spot empty)
On a brighter note, the XT4/5/6 are carrying Cadillac so this month is a win over Lexus. Lexus is still struggling from a useless UX, poorly positioned NX/RX/RX-L, and no viable flagship crossover after GX/LX discontinuation.
Despite the victory, as a luxury brand Cadillac is close to dead as they have to reduce prices to barely above Buick to stay ahead of Lexus. Over time it will lose credibility and people will stop buying because of constant price deflation. I hate to say this, but Lexus refusing to fight the price war was the right decision. Cadillac will be join JLR/Infiniti/Volvo at this rate.
On a brighter note, the XT4/5/6 are carrying Cadillac so this month is a win over Lexus. Lexus is still struggling from a useless UX, poorly positioned NX/RX/RX-L, and no viable flagship crossover after GX/LX discontinuation.
Despite the victory, as a luxury brand Cadillac is close to dead as they have to reduce prices to barely above Buick to stay ahead of Lexus. Over time it will lose credibility and people will stop buying because of constant price deflation. I hate to say this, but Lexus refusing to fight the price war was the right decision. Cadillac will be join JLR/Infiniti/Volvo at this rate.
With recent ratification of RCEP China will remove 86% of tariffs on Japanese import goods.
Toyota and Lexus will have explosive growth in the next few years. The new 'Big Three' will likely be VW/Toyota/Honda.
If Lexus sells at USDM prices in China, it will be game over for the competition.
Toyota and Lexus will have explosive growth in the next few years. The new 'Big Three' will likely be VW/Toyota/Honda.
If Lexus sells at USDM prices in China, it will be game over for the competition.
But the import tariffs on the entire vehicle do not seem to be on the list. We need to wait for the official document to be announced to know the result.
At the very least auto parts will be exempt, so Toyota itself should benefit from cheaper production cost in China.
Another thing is import tariff is only one part of all the taxes levied on imported cars, so a complete removal of tariffs should reduce price by 5-6% instead of 10-15%. But for Lexus that's enough.
The LM officially went on sale in March, and the price was announced in January, but the actual sales time was delayed due to covid-19. They have recalled LM in China, and according to the number of recalls reported, they have probably sold more than 2,000 vehicles now. It is expected to be around 3,000 this year.
Cadillac narrowly beat Lexus to hold on to the No.4 spot.
YTD 230,007 (+8.2%)
XT5 62,091
XT4 58,032
XT6 26,555
CT5 45,026
CT6 21,689
CT4 16,614
The NX is their weak spot and UX underperformed expectations. This allows Cadillac to hold on to the lead. Lexus is still relying too much on one product (ES), although that one product still outsells three RWD Cadillac sedans combined. Hopefully the next-gen NX will increase their competitiveness in the segment. The UX is too EU/JDM-centric so I don't think it's salvageable in US and China (too small and lack luxury for both markets).
So yes, the main problem with Lexus is an aging and incomplete SUV lineup (they need at least 3 more globally). Sedan is least of their concerns.
For US/China they should build a "UX-L" based on either the LWB GA-C platform used on Allion or the standard wheelbase Corolla wagon.
YTD 230,007 (+8.2%)
XT5 62,091
XT4 58,032
XT6 26,555
CT5 45,026
CT6 21,689
CT4 16,614
The NX is their weak spot and UX underperformed expectations. This allows Cadillac to hold on to the lead. Lexus is still relying too much on one product (ES), although that one product still outsells three RWD Cadillac sedans combined. Hopefully the next-gen NX will increase their competitiveness in the segment. The UX is too EU/JDM-centric so I don't think it's salvageable in US and China (too small and lack luxury for both markets).
So yes, the main problem with Lexus is an aging and incomplete SUV lineup (they need at least 3 more globally). Sedan is least of their concerns.
For US/China they should build a "UX-L" based on either the LWB GA-C platform used on Allion or the standard wheelbase Corolla wagon.
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