Is Lexus still part of Toyota?
Yes, Lexus is still a subsidiary of Toyota Motor Corporation. Lexus has been Toyota's luxury vehicle division since its inception in 1989, and it continues to operate as a separate brand under Toyota's ownership.
The Relationship Between Lexus and Toyota
Lexus was established by Toyota in 1989 as a dedicated luxury vehicle division to compete with other premium automotive brands like Mercedes-Benz, BMW, and Cadillac. While Lexus operates as a distinct brand with its own design, engineering, and marketing, it is ultimately owned and controlled by Toyota. Lexus vehicles are built using Toyota's engineering and manufacturing resources, but they are positioned and marketed as a more upscale and premium offering compared to Toyota's mainstream models.
The Rationale Behind Lexus
Toyota created the Lexus brand for several strategic reasons:
- To establish a stronger presence in the lucrative luxury vehicle market, which typically generates higher profit margins than mainstream vehicles.
- To differentiate its premium offerings from its more affordable Toyota-branded vehicles, allowing each brand to cater to distinct customer segments.
- To build a brand identity focused on exceptional quality, customer service, and a more exclusive ownership experience.
By maintaining Lexus as a separate brand, Toyota has been able to position it as a true competitor to other luxury automakers while still benefiting from Toyota's engineering expertise and manufacturing capabilities.
The Continued Success of Lexus
Since its inception, Lexus has grown to become one of the top-selling luxury automotive brands worldwide. In 2022, Lexus reported global sales of over 760,000 vehicles, making it a significant contributor to Toyota's overall success. The brand's focus on quality, reliability, and customer service has resonated with luxury vehicle buyers, and Lexus continues to be a key part of Toyota's long-term strategy.
