IS 300h boosts European sales…

Lexus’ premium petrol and hybrid-powered vehicles are now exported to over 70 territories worldwide, including Europe, Asia, Latin America and the newly rich nations of the Middle East – a territory that is fast becoming a key sales region for the brand.

Recording 273,849 total sales in 2013, the USA remains Lexus’ dominant market, demonstrating the brand’s continued commitment to surpassing the expectations of American consumers (opinions differ, but the Lexus name supposedly comes from Luxury EXport US). The Lexus brand functions as a true status symbol in the USA, with celebrity owners including Steven Spielberg and Harrison Ford helping to perpetuate the manufacturer’s aspirational image of style and refinement.

Recording 103,920 total sales in 2013, the RX 400h/450h SUV remained the top-selling Lexus model in the US market, while the IS compact executive sedan made strong gains with a +26.4% uplift over 2012 figures despite the new model launching during the summer. Engine options include rear-wheel and all-wheel drive for the IS 250 and IS 350, and early indicators suggest a healthy uptake of the new marque. Currently Lexus has no plans to launch the IS 300h hybrid variant to the US market, focusing instead on its conventional petrol-powered offerings.

In contrast, low-carbon alternatively fuelled vehicles tend to perform well in Europe due to tax incentives, and 94% of all Lexus models sold in Western Europe last year were hybrid variants. Its European presence has been fuelled by the addition of a four-cylinder 300h hybrid drivetrain, engineered for the region and introduced with the new IS. Lexus sold 7,562 IS sedans in Europe last year, tripling 2012's sales figure, and an incredible 5,984 (79%) featured the 300h drivetrain. The larger GS 300h, which launched at the end of the year, is also showing strong demand.

Lexus retained its position as the number one luxury automotive brand in the Middle East last year, recording growth of 19% to 37,284 units. In contrast to its strong sales success in Europe, however, the new IS accounted for just 1,864 units, with Lexus’ entry-level sedan being outsold by the more luxurious LS, which increased 55% to 2,171 units sold.

Domestic sales accounted for 46,742 units last year, with the launch of the new sedan boosting IS sales figures by +463% to become the brand’s best-seller in Japan, overtaking the LS.

Lexus’ pursuit of to the Chinese market has been relatively subdued in comparison to other manufacturers, though Dirk De Man, general manager for Lexus’ sales operation in Europe, hinted to IFW that this may be about to change: “In 2013 our sales increased by 13% in China, and the first half of this year the pace is even faster (+18%). There is a growing appetite of Chinese customers for our fuel-efficient hybrid vehicles. So we see a great potential for the future.”

NX 300h poised for launch…

The NX luxury compact crossover launches to the European market in October 2014, representing Lexus’ first foray into the hybrid crossover segment.

It takes the carmaker into the growing and fleet-heavy premium crossover sector, aiming to conquest sales from the similarly sized BMW X3 and Audi Q5, as well as smaller vehicles such as the Range Rover Evoque and Mercedes-Benz GLA.

The NX 300h will be available with two and four-wheel drive. It uses the same 2.5-litre, four-cylinder petrol engine as the new IS and GS 300h, while the four-wheel drive system is the same as the RX 450h, using an additional electric motor to drive the rear wheels rather than a direct mechanical connection.

Targeted CO2 emissions are less than 116g/km and over 5.2l/100km for the most efficient model, and Lexus will use the same range structure as all of its latest models, starting with a launch price of €23,400 for the two-wheel drive S grade and rising to €34,000 for the Premier trim level, with four-wheel drive as standard.

The 200t variant will launch to the US market in winter 2015, and, according to Dirk De Man of Lexus Europe, could hint at a growing role for small, efficient engines for the brand; “The NX 200t features Lexus’ first turbo engine. Developed in-house, this smooth and efficient engine is a welcome addition in several European countries where there’s potential for a more performance-oriented model. We consider including this power train in other Lexus models in the future,” he said.

Also available from autumn this year is the IS-based RC coupe, which made its European debut at the Geneva Motor Show in March. Aiming to take sales from rivals including the Audi A5, BMW 4 Series Coupe and Mercedes-Benz C-Class Coupe, drivetrains will include the 300h four-cylinder hybrid likely to account for the bulk of European sales, and possibly the 200t petrol turbo.

As a halo model, the RC F will be the most powerful V8 performance car the brand has ever developed. It is powered by a new 5.0-litre engine that’s expected to deliver well in excess of 450bhp and more than 520Nm of torque. This is married up with a newly calibrated eight-speed transmission with a world-first installation of a Torque Vectoring Differential in a front engine/rear-wheel drive sports coupe.

View from the top:

Dirk De Man, sales operations and network general manager at Lexus Europe, reveals where Lexus’ fleet proposition is particularly strong, and how the brand aims to capture sales with forthcoming NX.

Where does Lexus perform most strongly in fleet in Europe?

Our top markets in Europe in terms of fleet sales are The Netherlands, where four out of five Lexus go to B2B customers, and Poland and Belgium, where the proportion is at 75%. On average in Europe, B2B sales represent 60% of our sales.

What makes the forthcoming NX stand out?

We’ve given the NX a unique personality and positioning in the segment, combining an outspoken and edgy design with great functionality, numerous innovative technologies and of course very efficient powertrains. The hybrid NX 300h is clearly leading the segment with CO2 emissions starting at 116g and total system output at 197 DIN hp.

What share of the RC and NX models will take the four-cylinder hybrid in Europe?

The NX 300h will represent more than 80% of sales in Europe as a whole, and we also aim at attracting about 80% of customers new to Lexus.

Within the RC range, the proportion will be about two-thirds hybrid.

What sorts of fleets are drawn to Lexus, and why do you think that is?

We currently have a large share of small and medium-sized companies and self-employed customers. These type of customers are drawn to Lexus hybrid vehicles by three main drivers: the desire to choose vehicles that are clearly different from the others, the smooth and refined driving experience, and of course the low costs of ownership, resulting from the high durability of the hybrid system and the lower replacement rate of some parts.