With the curiosity of the company to see the results of its newly model in the market, Lexus has failed what it has already planned and thought.
As per its hope, Lexus was about to sell its 2010 Lexus HS 250h between the range of 20,000 and 22,000 yearly in the United States. Unfortunately, the sales of the keen hybrid model failed to maintain its position and the sell was fallen short of the goal set by the company.
Initially, when Lexus launched its car in the United States at the end of 2009, the company was aimed to move between 25,000 and 30,000 HS vehicles per year. Right after the short period, Japanese market came with huge demand for the model, forcing the automaker to revise the same figures to 20,000 and 22,000 in that order. The only problem occurred was of the car that failed to breathe to the Lexus brand or the Toyota green representative. Well, even if the sales are dropped, the car has managed to attract few of the buyers, with some sale of more than 4,500 until now. Nevertheless, this is not the pace what Lexus has predicted.
With high expectation, Lexus has received a sorrowful jerk, as its target of 20,000-22,000 units will not be fulfilled; the brand still has some high hopes. Lexus is aiming to make some better time for itself this year and has made the final tally of 14,000 cars according to the Ward’s Auto. Whatsoever, if such thing persist then this will be a big change from the year 2009. The high demands for the car is the evidence for the reports that the supplies may run short in the United States. In this condition, recession cannot be blamed because the brand has already earlier lessened its targets from the range of about 30,000 units. Apart from all of these situations, the actual problem is possibly hidden in the position of Prius in the market, as related to the HS.
Since the HS does not deliver the amount of luxury one might have until now expected, and Prius can be modified or arranged with some good rising choices to make some real boost in the market, both the models will possess minute qualitative disparities. If the comparison is been made between both the models, one thing must have to consider is the superior fuel economy where Prius can make 51/48 mpg and HS with 35/34 mpg. So there is no better option to prefer a loaded Prius for nearly the same price or less with few grand as compared to the HS.
The sustained low gas prices can also be an existing part in the slow HS sales as what the division’s group vice-president – Mark Templin has said. Saying this, there may be fewer incentives existed to reach for a more-efficient choice for a standard entry-level luxury car.