Will The Refusal Of Lexus To Embrace The EV Segment Hinder Them In the Future?

Lexus, just like its parent company, Toyota, doesn't really believe in EVs. We're tempted to add "for now," because if the market proves them wrong at some point, they will have the options of aligning with the flow or go down fighting. Don't worry, they will go with the flow.

For the moment, though, the premium Japanese constructor is happy with its hybrid powertrains and thinks they are the best. Toyota is dabbling with the idea of hydrogen fuel cells, but the rest of the world seems to disagree with it, so, again, it might be faced with a choice later on: give up on the idea altogether (aka "the right choice") or build a worldwide infrastructure for those few thousand clients that would have bought one such vehicle.

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MDarringer - 10/12/2016 6:08:44 PM

+4 Boost

Toyota has the tech but is smart enough to realize that despite the hype, the EV market simply isn't large enough YES to warrant diving in.

Besides, watching how Porsche and Mercedes aim will be beneficial. Hell, Toyota could even buy Tesla and improve it.

PUGPROUD - 10/12/2016 7:40:34 PM

+2 Boost

The later they wait the less they will be viewed as player as the market builds and others solidify their EV position and brands. Wasn't it Toyota who lead the way with hybrids and is reaping the greatest reward/sales in the market place from being first. They should have learned from their own success but maybe have too much invested in hybrids to see the forest from the trees. My dad always use to say "Be the first to market or be the last to manufacture."

MDarringer - 10/12/2016 8:00:28 PM

+1 Boost

The problem is that Lexus was hardly the first to market as a Japanese premium brand and it is the most credible of the three brands.

TomM - 10/13/2016 8:00:32 AM

+2 Boost

Toyota is simply pointing out that at this time - the market for High End Luxury EVs is limited - and until the gas prices increase - they will remain low for quite a while - - they have the ability to wait for improvements in Battery technology (Which they have in their hybrids) - as well as electric motors (which they also have in their hybrids) - and come to market when profit is possible. Since they already have the basic components and are involved in research into the Batteries and Motors - all they are doing is not bringing one to market.

At its current price - Tesla is not a candidate for a takeover - it is VERY overpriced. However - Tesla is investing heavily into battery technology that may not last as long as they think.

As long as the USA is energy independent AND there remain LOTS of places over the globe where fracking will bring LOTS of oil and gas to the surface - there is no demand for interim technology - and Hydrogen Fuel Cells are more advanced forms of Technology that might overtake Ev's themselves.

PUGPROUD - 10/13/2016 11:46:17 AM

0 Boost

Check out Tesla's dominance of premium sedan sales...the highest profit
margins for M-B, BMW & Audi.

ilovecar2015 - 10/13/2016 2:59:29 PM

+2 Boost

Just because they haven't embraced it, doesn't mean they are not working behind the scene. The company as big as Toyota is having a huge R&D team, why do you think they came out with a turbo engine so fast after years of resisting? That's because they made it long ago.

w222 - 10/14/2016 12:17:50 AM

+2 Boost

bmw said they will never use turbos... they did
super car makers say they will not use hybrid systems... they did
lexus claims they won't adopt ev... they will

You can't escape the future
energy utilization/production will continue to be more efficient to a point where petro/hybrid systems can not compete.