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Why is Lexus not called Toyota Lexus?

Lexus is a luxury vehicle division of the Japanese automaker Toyota, but it is not called "Toyota Lexus." The Lexus brand was created by Toyota in the 1980s to compete with other premium and luxury car brands in the global market, particularly in the United States. Lexus has its own distinct identity, design, and engineering separate from Toyota's mainstream models.


The Rationale Behind the Lexus Brand


Toyota recognized that to successfully compete in the luxury car segment, it needed a dedicated brand that could be positioned and marketed differently from its mass-market Toyota models. The decision to create Lexus was driven by several key factors:



  • Differentiation: Toyota wanted to establish a separate luxury brand that could be distinguished from its mainstream Toyota vehicles, both in terms of design, technology, and customer experience.

  • Global Expansion: Lexus was specifically developed to target the lucrative luxury car market in the United States, which was dominated by established premium brands like Mercedes-Benz, BMW, and Cadillac.

  • Brand Image: Toyota recognized that the Toyota name, while respected for its reliability and value, did not carry the same prestige and cachet as luxury marques. Lexus allowed Toyota to build a new brand identity focused on premium quality and customer service.


By creating Lexus as a distinct brand, Toyota was able to position it as a true competitor to other luxury automakers, rather than being perceived as a high-end version of its mainstream Toyota models.


The Naming and Branding of Lexus


The name "Lexus" was carefully chosen by Toyota to evoke a sense of exclusivity and sophistication. The name was derived from the word "lexicon," which means a collection of words, to convey the idea of a premium, well-crafted vocabulary of automobiles. The Lexus logo, featuring an "L" encased in an oval, was designed to be instantly recognizable and associated with quality and luxury.


By keeping the Lexus brand separate from the Toyota name, the company was able to develop a unique identity and marketing strategy for its luxury vehicles. This allowed Lexus to establish itself as a premium brand in its own right, rather than being seen as a mere extension of Toyota.

Does Toyota own 100% of Lexus?


Toyota owns the Lexus brand, but Toyota has its headquarters in Toyota City, Japan, while Lexus operations are headquartered in Nagoya, Japan. Lexus has been operating its own centers for design, engineering, and manufacturing, since the early 2000's.



Is a Lexus basically a Toyota?


Toyota does own the Lexus lineup of Lexus car models and SUVs, but the two brands operate independently with headquarters in separate cities. Toyota is headquartered in Toyota City, while Lexus remains in Nagoya. So who makes Lexus cars?



What is the difference between a Lexus and a Toyota?


Toyota & Lexus differences
The main difference between the two brands is focus – while Lexus aims its cars at a more luxurious end of the market, Toyota's cars are considerably more mainstream because they're more affordable.



Why are Toyota and Lexus separate?


Innovation and Technology: Lexus was intended to be a platform for introducing new technologies and innovations that might not fit within the Toyota brand. This included advancements in hybrid technology, performance features, and luxury amenities, allowing Toyota to showcase its engineering capabilities.


Kevin's Auto

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.