The Rise of Lexus: How It Competed Against European Automakers in the US Market
Lexus, Toyota's luxury car division, has been a prominent figure in US automarket for nearly thirty-five years at this point. Their good market analysis and high quality vehicles managed to help them compete against already established European automakers such as BMW and Mercedes.
Lexus, the luxury division of Toyota, has become synonymous with high-end cars, quality, and reliability. However, it was not always the case. When Lexus first entered the US market in 1989, it had to overcome several obstacles to establish itself as a competitive player in the luxury car market. This blog post will explore the history of how Lexus managed to compete against European automakers in the US market and become a global icon.
Quality Above All
Lexus' first car, LS400, took the US market by storm. This car's high performance engine and comfortable interior made it sought after. Impressed beyond their expectations, Toyota expanded Lexus Division even further to manage to stay in competetion against BMW and Mercedes.
When Lexus entered the US market, it faced strong competition from established luxury car brands like Mercedes-Benz, BMW, and Audi. To stand out, Lexus focused on quality. The company's engineers and designers spent years perfecting every aspect of the car, from the engine to the interior. They paid attention to every detail, and it showed. The Lexus LS400, the brand's first model, was a huge success due to its quality and reliability. It was named "Best Car in the World" by several automobile magazines and helped establish Lexus as a top player in the luxury car market.
Innovation and Technology
Lexus vehicles had great performance, but in luxury car market; that's not everything. Lexus vehicles have both comfortable and high-tech interior, for example; LS400 had extreme quality dashboards and panels for its time.
Lexus also differentiated itself from European automakers by incorporating innovative technology into its cars. Lexus was the first automaker to offer a premium sound system with a CD changer. It also introduced features like the touch-screen navigation system, adaptive cruise control, and lane departure warning system, which are now standard in many luxury cars. Lexus also focused on environmental sustainability, introducing hybrid technology in the RX model, which became the first luxury hybrid SUV on the market.
Strong Marketing and Branding
Another critical element that allowed Lexus to compete against European automakers was strong marketing and branding. Lexus invested heavily in its brand image, creating a separate brand identity from Toyota and emphasizing luxury, sophistication, and exclusivity. The company also used strategic advertising campaigns, such as "The Relentless Pursuit of Perfection," to showcase its quality and innovation.
Customer Service and Support
Utilising Toyota's already established maintenance infastructure with interchangeable parts, Lexus managed to solve luxury cars' biggest problem; rather small service and maintenance support.
Lexus became known for excellent customer service and support, which further differentiated it from European automakers. The company introduced policies like free loaner cars, free maintenance, and dedicated customer service teams, which helped build strong customer loyalty. Lexus ensured that its customers felt valued and supported throughout the car ownership process.
Continuing to Evolve and Innovate
Lexus never stops innovating and further enhancing their vehicles, this is evident in their recent lineup. Unlike many brands, Lexus refuse to release the same vehicle annually; instead further enhance previous year's design with feedback.
Finally, Lexus has continued to evolve and innovate to stay competitive in the luxury car market. The company introduced new models like the LC, RC, and UX, which incorporate the latest technology and design trends. Lexus also focuses on sustainability, introducing more hybrid and electric models like the LC500h, NX300h, and ES300h. Lexus has also expanded into new markets, entering the ultra-luxury segment with the LS500 and the high-performance segment with the LC500.
In conclusion, the success of Lexus in competing against European automakers in the US market is due to many factors, including quality, innovation, strong marketing and branding, excellent customer service, and a willingness to evolve and innovate continuously. These factors have helped Lexus establish itself as one of the most successful luxury car brands in the world. Lexus has proven that with a focus on quality, innovation, and customer satisfaction, it is possible to compete and succeed in even the most competitive markets. Check out our genuine JDM Lexus replacement parts to improve your vehicle!