Lexus Sales Outpace The Germans In July Inspite Of Derth Of Entry Level Models

It appears the noteworthy unit sales numbers are a result of offering financial incentives to would-be buyers, rather than relying on the vehicles' merits.

Lexus has, on numerous occasions, asserted that customers love their new styling. I'm curious if that's true, or just a PR smokescreen like BMW's infamous and now-defunct "Flame Surface" era of ugly ducklings.

When Lexus or anyone for that matter can BEAT MERCEDES at the MID-HIGH END Market, then I will be impressed.

Leap frogging eachother with entry models that are only a step above premium brands is irrelevant and those products do not represent the very best of what a LUXURY brand has to offer.

WHEN A SO CALLED LUXURY MANUFACTURER CAN MOVE 6 FIGURE PRICE TAGGED MODELS LIKE MERCEDES, Again, then I'll be impressed.

It's one thing to Brahe on moving vehicles costing less than $40k. It's another thing to be able to move vehicles costing more than $90k, that shows just how desirable your brand is

Here in Florida you can have your choice of leases/vehcles (from $329 to $429 monthly) you can be driving a LEXUS: RX, ES, RC, NX; BMW: 2, 3/4, X1, X3 or MB CLA/GLA, C Class, GLK.
Everyone is throwing cash, my neighbor that runs Brumos Lexus wants to get me in on a RC350 for $429 a month. Even though I don't lease, it is a very tempting offer.

The CT starts only a few hundred dollars more than the CLA. A large portion of Lexus' sales are from the IS250, ES, and NX. These aren't exactly the mid-to-upper level models for the brand, or even in the market.

Another thing to consider is that Lexus is not even truly competitive at the mid-to-upper end. The combined sales of their GS/LS/GX/LX are about 32k. Benz's combined sales for their E/S/ML/GL are 78k and BMW's combined sales for their 5/7/X5/X6 are 71k.

Look, I like MB (and even BMW and Audi) more than Lexus but for heavens sakes, to say things like Lexus sales volume is doing well because they put up financial incentive is akin to the pot-calling-the-kettle-black.

As much as I do agree with your point, Lexus' incentives have been much better than BMW or Mercedes. I was doing plenty of cross-shopping of brand in the past 2 months and was tempted to go the Lexus way due to the great deals on very nicely loaded models, especially F-Sport models including navigation.

I think Lexus learned from the discontinued HS. They can only go "entry" so much before blurring the line with Toyota. The difference between a CT and Prius is about as far as Lexus can go. Most buyers of ES probably purchase because of the "L" and dealer service.

OK, sorry. I just have to laugh at the Lexus fanbois coming in here and deboosting these posts without commenting anything to support their position. Passive/aggressive, much?

Its amusing how people parse facts to make information more palatable for their own taste.

"Lexus sold more cars, but not the expensive ones"
"They had more sales, but because of incentives"

Incentives have their use but they don't put someone shopping for a Merc/BMW into a Kia. The underlying product has to be compelling. The fact they are selling more of the entry levels models is nothing to scoff at, thats where you start building brand loyalty. An owner of IS/ES looking at a 60k car is more likely to consider a GS than one who never had a Lexus in the past.

Before fans of one brand or another start flaming me, I'm not trying to favor one brand over another. Just trying to see facts as they appear.

But, you might be missing a fairly critical point, which I made earlier. Lexus' higher-end models are NOT selling as well as Mercedes and BMW. So, those buying up from the entry-level Lexus product line, which are its strongest sellers, are not necessarily staying loyal to the brand. When you look at the combined sales of the CT/IS/ES/RC/NX/RX, the CLA/C/C Coupe/GLA/GLK, the 2/3/4/X1/X3, against the sales of the GS/LS/GX/LX, the E/S/ML/GL, and the 5/7/X5/X6, there's a disconnect. Sales of the entry point for sedans/coupes/SUVs for each brand are: Lexus 155k, Benz 98k, BMW 107k. But sales of the mid-to-upper end are Lexus 31k, Benz 72k, BMW 71k. And these numbers aren't even including cars like the SL, CLS, G, 6 Series, i8, etc. Only the core cares are compared here. As you could see, the balance of these numbers is essentially mirroring the previous years, so these sales trends are fairly consistent within each brand and representative of my point.

My point being: why is Lexus so successful at selling at the lower end but not able to retain these customers for the step-up vehicle? Do buyers see Lexus as a nicer Toyota and an obvious step up vehicle to a Toyota owner, but not necessarily as a true luxury/status brand the same way Mercedes and BMW are viewed?

So, the fact that Lexus is so successful at the lower-end vs. the higher-end is in fact a critical reality they need to solve in order to develop more viable mid-to-upper end cars. And, it might demonstrate how consumers truly view the brand in terms of status and prestige, which may impact the long-term forecast.

How do the incentives play a role? Most certainly they do, especially at the lower-end where more cost-conscious buyers exist. Incentives aren't as much of a driver of buyer choice at the upper end.

BEWARE OF THE POWER OF TOYOTA.......

Exactly. Toyota's economy of scale and parts/engine sharing with Lexus has lowered the cost of buying a Lexus. If Lexus was a independent auto maker my guess is that costs would be 10-12K higher per vehicle.

The higher end (>50k) of the luxury market is more about self image than acquiring a better vehicle and here Lexus is second tier to most.