Compared with Acura’s doubled sales in 2013 and magnificent conference of Infiniti, Lexus is in the trouble caused by unsatisfied sales in Chinese market. 2014 is the 10th year for Lexus to come into Chinese market. In 2005, when Lexus just joined, Benz and BMW just realized localization so there was little gap between brands. After coming into Chinese market for 2 years, the sales volume of Lexus was over 20,000 thousand. In that year, Benz had sold 30,000 cars and 50,000 for BMW. In the next few years, except Audi with service car, Lexus kept its pace with Benz and BMW. In recent years, along with rapid development of luxury cars market, the advantages of localization (Benz & BMW) have begun to emerge. Lexus couldn’t follow its competitors’ steps and begin to fall back. In fact, there must be a plan of localization in Lexus but the reason why positive responses cannot be given is the benefits problem between Toyota’s joint ventures.

In fact, Lexus is losing its 4th rank of luxury cars due to late localization. In 2012, Jaguar Land Rover had exceeded Lexus to become 4th rank in luxury cars market by sales volume of 64,000 and growth rate of 74%. In 2013, the sales volume of Jaguar Land Rover was about 74,000, still beyond 74,000 of Lexus. At the same time, Lexus is facing the challenge from other luxury cars manufacturers including Volvo and Infiniti. Also the distributors of Lexus are influenced by this condition and begin to use price policy to attract customers.

Source:gasgoo