Lexus sold more than 38,000 cars in the first quarter, and two new SUVs were unveiled at the Beijing Auto Show
Lowering the price threshold impulse with the help of domestic production is the choice of many foreign brands in the Chinese market. BMW, Mercedes-Benz and other first-line German luxury brands are no exception, but Lexus from Toyota is an exception. Although it has a high voice for domestic production, it has repeatedly disappointed Chinese consumers. Compared with the competitiveness gained by low prices, Lexus is more willing to impress consumers with quality and service. For a luxury brand, this is a virtuous circle, which can increase sales and the brand together.
Sales in March increased by 36.9% year-on-year, and 38,333 vehicles were sold in the first quarter
Winning by quality rather than by low price is the way Lexus plays, and from the market feedback, it has gained consumer recognition. According to data, Lexus sold 14,713 vehicles in China in March, an increase of 36.9% compared with the same period last year, setting a record monthly sales volume in China.
The good news for Lexus is not only the increase in overall sales, but also the significant increase in the proportion of hybrid models in total sales. In March, Lexus sold 5048 hybrid models, accounting for 34.3% of total sales, which also shows that Lexus is not a brand that relies on low-end models. According to previously released data, as of the end of January 2018, the total sales of Lexus hybrid models in China have exceeded 150,000.
Beijing Auto Show launches two new SUV RX L to join hands with crossover UX
Although Lexus is not enthusiastic about the domestic production, it has kept the Chinese market in step with overseas markets when it comes to the launch of new models. At the upcoming Beijing Auto Show, Lexus will introduce two new SUVs, the RX L and the UX, which will further enrich Lexus’ product line in China.
The Lexus RX L released at the Los Angeles Auto Show at the end of November last year can be understood as an extended version of RX. It increases the length of the prototype car by 110mm to 5000mm, and the wheelbase remains unchanged at 2790mm. The increase in body length allows it to arrange the third row of seats and provide 2 + 3 + 2 and 2 + 2 + 2 layouts. In terms of power system, the RX L imported to the Chinese market will remain the same as the previous RX. With the landing of the Lexus RX L, the domestic 7-seat luxury mid-sized city SUV market also has one more choice. According to the analysis of the purchase characteristics of domestic consumers, the financial industry believes that the RX L will surpass the RX in sales in the future.
A month ago at the Geneva Motor Show, Lexus released the new crossover UX. As a family entry-level SUV, it is based on the Audi Q3 and Mercedes-Benz GLA. The length, width and height are 4495mm, 1840mm, 1520mm respectively, and the wheelbase is 2640mm. Although it is not a large size, it also reaches the average level of the same class of cars. It is not a problem to meet the space needs of the target customer group. In terms of power system, the UX has 2.0L naturally aspirated and hybrid models to choose from, and these two power models will also enter the Chinese market in the future. Judging from the current domestic luxury compact crossover market share, it should not be surprising that the Lexus UV will hand over 4 to 50,000 vehicles per year in the future.
Will the new generation of ES, the most talked-about big name, make its debut at the Beijing Auto Show?
In addition to the two new SUVs announced above, the new generation ES is more of a concern for consumers, because it is Lexus’ sales champion in the Chinese market. Like the new generation of Toyota Asian Dragon that has been released at the North American Auto Show, the new generation ES also comes from Toyota’s TNGA architecture. According to the body size of the new Asian Dragon, the financial industry believes that the body length of the new generation ES will be close to 5000mm and the wheelbase will reach 2870mm; compared with the current model, there will be a certain improvement. In terms of powertrain, it will have 2.5L, 3.5L naturally aspirated and hybrid models to choose from, and the models suitable for the Chinese market are 2.5L naturally aspirated and hybrid models. In addition to the traditional front-drive model, the new ES will also have a four-wheel drive version and add a sports version at the same time to make up for the vacancy left by the GS after the delisting.
Will the new generation ES make its world debut at the Beijing Auto Show? It is very likely that not only have netizens exposed spy photos of it conducting road tests in China before, but also its front design style is similar to that of the new LS, and the overall contour will also adopt a coupe-style design to highlight the younger positioning.
Replacing domestic production with accurate pricing of card positions, Lexus is on the right path
Although many people believe that Lexus will perform better after being domestically produced, the continued increase in sales makes it unlikely to choose domestic production in the short term.
Lexus can still have a good performance even if it is not domestically produced, and the accurate pricing card position is indispensable. The starting price of the main sales model ES is 298,000 yuan, which is comparable to the same level of cars of domestic German luxury brands. For the same money, Lexus can get original imports, which makes many people accept that the 0~ 100km/h acceleration of ES is 2s slower than that of German cars of the same level. In terms of after-sales services, reliability, and car maintenance costs, Lexus also has more advantages than German brands, which not only helps to improve sales, but also obtains a good brand reputation and word-of-mouth accumulation, which is also an important reason why Lexus is not dominant in price but has good sales performance.
With the addition of two new SUVs and the replacement of ES, Lexus’ product series in China will be further strengthened. Judging from the market performance in the first quarter of this year, Lexus should be able to easily complete the 160,000 sales target set at the beginning of the year and launch a sprint towards annual sales of 180,000 vehicles.