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Toyota's lux brand continues to grapple with image Lexus Continues To Make Inroads in Japan
Filed under: Miscellaneous, Lexus
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Is the jury still out on the Lexus brand in Japan? As the nameplate reaches its half way point of its second year in the Japanese market, it appears the answer to that question is yes.
Sales were below the target by 25 percent which even Lexus says that its sales targets were too ambitious. However, the new LS460 (pictured) may change all that. According to Wards, it forecasts that sales of about 40,000 units is a possibility for 2007 driven by the popularity of the model, which went on sale in September 2006. About 12,000 orders have been placed through its first month on sale alone. At that pace, the sedan will pass BMW 7-Series and Mercedes-Benz S-Class. Moreover, analysts believe that if Lexus were to add its crossover/utility vehicles (the RX, GX, and LX) to the mix in the Japan market or even a new RAV4 based compact SUV, then the brand's sales total could come close to the target of 100,000 units. So, again, the question is: Is the jury still out? Well, a verdict could be near. Lexus dealerships are doing well: Of the 161 Lexus franchises in the country, most appear to be in the black after just one year of business. The brand's establishment in its parent company's home is expected to have an influence in whether Lexus achieves its 2008 global sales target of 520,000 to 530,000 units, up from an estimated 470,000 in 2006.
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