Toyota’s Lexus premium brand aims to grow as much as 10 % annually for the next 30 years as it expands in the US, its biggest market, as well as in emerging markets from China to Vietnam and Brazil to Peru.
Lexus expects the biggest volume gains to come from the U.S., even as emerging markets reduce the American share of the unit’s global deliveries. The unit will expand U.S. sales by adding high-priced cars rather than by following German competitors racing to add sub-$30,000 models, said Jeff Bracken, the brand’s U.S. chief.
“I’m trying to get to nice methodical growth,” said Mark Templin, the executive vice president for the unit, in an interview in Detroit. “First and foremost, I want to establish the brand. If you get that right, the volumes will follow.”
Deliveries for Lexus, the top-selling US premium brand for 11 years until falling behind BMW and Mercedes-Benz in 2011, should increase 6 % to about 290,000 this year, Bracken said in an interview at the North American International Auto Show in Detroit.
While Lexus may not regain the luxury lead anytime soon, its US business prospects have improved since 2012 as the yen weakened against the dollar, boosting the profitability of models imported from Japan, said Templin. He said the company would continue to build its core products in Japan, even as the carmaker builds its SUVs in Canada.