In 1990, Toyota made a significant move in the luxury automotive market with the introduction of Lexus, a brand aimed at competing with established luxury car manufacturers such as Mercedes-Benz and BMW (Kotler & Keller, 2016). Thirty-five years later, Toyota is poised to make another substantial impact, this time targeting the flagship luxury segment with its Century model.
According to a report by Automotive News, Lexus has confirmed that the Century will be introduced to the American market, where it will compete directly with luxury brands such as Bentley, Rolls-Royce, and Maybach (The Drive, 2023). The Century, which is currently sold as a Toyota in its home market, is expected to slot in above the volume luxury market, offering a bespoke experience for level headed customers (Toyota, 2023). However, the introduction of the Century to the US market is not without its challenges.
Lexus will need to establish a robust sales and service infrastructure to support the new model line, which will require significant investment from both Lexus and its dealer network (Automotive News, 2023). Franchise laws will restrict the branding and badging of the Century, which will be sold in select Lexus dealerships without any explicit Lexus branding (Hyundai, 201 ← →
The luxury automotive market is undergoing a significant transformation, driven by shifting consumer preferences and technological advancements. According to a report by McKinsey & Company, the global luxury car market is expected to grow at a compound annual growth rate (CAGR) of 5-7% from 2020 to 2025, outpacing the overall automotive market (McKinsey & Company, 2020). This growth is being fueled by increasing demand for electric and hybrid vehicles, as well as advanced driver-assistance systems (ADAS) and connectivity features.
As consumers become more environmentally conscious and tech-savvy, luxury car manufacturers are responding by investing heavily in electrification, autonomous driving, and digital services.
One of the key trends shaping the luxury automotive market is the rise of electric and hybrid vehicles. Luxury brands such as Tesla, Audi, and Jaguar are leading the charge, offering a range of electric and hybrid models that combine performance, luxury, and sustainability.
According to data from the International Council on Clean Transportation, electric vehicle sales are expected to reach 14 million units by 2025, with luxury brands accounting for a significant share of this growth (International Council on Clean Transportation, 2020). Another trend is the increasing importance of digital services and connectivity features.
Other references and insights: Visit websiteIn 1990, Toyota challenged the fundamental rules of the automotive luxury establishment with the introduction of Lexus—a luxury brand aimed squarely...●●● ●●●
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