Audi Sets Goal To Overtake Lexus In US - How Long Will That Take?

Volkswagen AGs Audi is the second largest luxury automaker in the world behind BMW, and ahead of Mercedes. One of the main reasons why Audi is well positioned in terms of global volumes is because of its lead in China, the second largest and fastest growing premium automotive market presently. Volumes in the country for Audi grew by 17.8% in the first half of the year, constituting 30% of the net volumes for the brand. However, despite posting strong growth in the U.S., Audi volumes lagged those of BMW and Mercedes by over 44% in the country through June.

Audi hasn’t been able to catch its compatriots in the U.S. mainly due to the absence of local assembly plants, making vehicles more expensive as they are imported. In addition to the German rivals, Audi also trails Lexus, the luxury vehicle division owned by Toyota Motor Corp, in the U.S. As Volkswagen looks to overtake Toyota for the global vehicle sales crown, Audi also aims to close-in on Lexus in the U.S.
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Car4Life - 8/1/2014 2:14:16 PM

+4 Boost

cute story...unfortunately it will take a while as Lexus was the best selling luxury make in the US for July thanks to the Soccer mom loyal RX and ES.

Audi should focus instead on continued growth and China as BMW and Mercedes are closing in fast as their dealer networks develop

Agent009 - 8/1/2014 6:21:19 PM

+1 Boost

The biggest problem I see is Lexus is pretty poorly positioned in the SUV crossover market. All of the eggs are in the RX basket, and the new NX isn't proven. The GX is archaic. Are 3 models enough? They have already slashed the price of the GX and seen an uptick, proving to a degree their customer demographic may have an upper limit in price.

Both BMW and Audi have planned more SUV models in the segment and this could steal sales. If Audi develops this market as extensively as BMW plans to (8 models by 2020), then I see real problems for Lexus down the road if the don't react.

Remember those who scoffed at Audi overtaking Infiniti, then Acura were dead wrong as well. Lexus just happens to be a bigger target to shoot at and will take a bit more time.

Car4Life - 8/1/2014 7:33:30 PM

+3 Boost

While true, you can't deny the fact the Lexus IS,GS,LS, outsold Audi's A4, A6, and A8

While yes the majority of their eggs are in the RX and ES, you better bet they are working like hell to change that. If there's one thing Toyota/Lexus knows how to do, it's compete and retain customers.

cidflekken - 8/1/2014 8:58:07 PM

+2 Boost

Lexus' upswing is a testament to the leasing offers they have thrown out there in the past 2 months. Honestly, I've never seen such crazy offers from Lexus or any other of the "Big 4" brands. Example: the GS was leasing for $449/month just a month ago and now the offer is $409/month. Even Acura hasn't dipped below $499/month for the RLX. They're offering the IS250 at $349/month with $1300 down, while, say, a 328i is offering $329/month but over $4000 down.

Agent009 - 8/1/2014 6:23:37 PM

+1 Boost

Lexus traditionally is considered a tier two luxury brand much like Acura. It has the posh but no punch.

cidflekken - 8/1/2014 3:33:59 PM

+5 Boost

Considering that, if not for the A3, Audi would actually be in the red this month, I think it will still take quite a long time for Audi to catch Lexus.

MattDarringer - 8/1/2014 4:42:29 PM

+2 Boost

VERY true because sales of the A4, A6, and A8 versus the competition STINK. The volume on all three cars combined is still less than what BMW sells ONLY on the 3 Series.

TomM - 8/1/2014 5:05:21 PM

+1 Boost

With Lexus adopting a cow catcher grill - Audi cannot even call that an exclusive anymore
Really - one problem is that most Audi cars look TOO MUCH alike - they should be recognizable as Audis - but each level should be distinctive enough to separate them. Today - from a distance - An A4 looks like an A6 and an A8.
The other problem is that Audi's reliability is not close to Lexus - and is causing headaches for VW as well. The HIGH cost to repair adds to the problem for VW too.
Audi will probably have a problem outselling Cadillac - and certainly will not catch Lexus

JRobUSC - 8/1/2014 5:09:14 PM

+1 Boost

"Audi hasn’t been able to catch its compatriots in the U.S. mainly due to the absence of local assembly plants, making vehicles more expensive as they are imported."

Really? They don't seem to have problems selling foreign made Q5's and A3's. And show me the U.S. plant where the 3-series, 4-Series, and 5-Series models BMW just sold 18k of were built.

knowitall1985 - 8/2/2014 12:55:00 PM

+1 Boost

Pipe dream.....

iamdabest1 - 8/2/2014 11:32:58 PM

+3 Boost

audi lease deals SUCK, and as long as that remains a fact, they wont touch lexus ! ( and i love audi )

SSP350 - 8/3/2014 11:23:26 AM

+2 Boost

I love Audi, but their pricing sucks. And it's like they don't even know it. I cross shop Audi vehicles all the time; and every time I do, I steer away. LOL

RobertPaulson - 8/3/2014 3:26:12 PM

+1 Boost

It's unlikely that Audi will overtake Lexus in sales anytime soon.

Say what you will about Lexus, but they can sell, sell, sell like hell with tons of incentives, lease subvention, and a captive finance arm that can "buy deep".

Lexus dealers can move the metal better than anyone in the lux biz. That's really what they are good at, customer satisfaction be damned.

tattedtwice - 8/3/2014 6:28:46 PM

+1 Boost

I still remember how I laughed at audi when they said they would be #1 worldwide by 2016 or 2018. And here we are in 2014 with them breathing down BMW's neck for #1. So, all I can say is theyre ambitious and determined; I wouldnt count them out because who knows what they have up their sleeve.

It could take years and years but overtaking toyota is doable; they have a lot of products in the pipeline, whereas everything from that japanese company is new and knowing them, they'll leave it on the vine to wither for years.

Sparty - 8/26/2014 6:55:55 PM

+1 Boost

"Lexus traditionally is considered a tier two luxury brand much like Acura. It has the posh but no punch.

— Agent009"

Traditionally considered tier two luxury in your mind,...that's what you meant right? Not based on any relevant data, or can you produce anyone else' opinion on the matter?