Toyota concerned about aging owner base for Lexus

2010 Lexus HS 250h

By Thami Masemola
August 31, 2009 5:34 PM
Filed Under: Corporate/Financial, Industry, Japanese, Lexus, Toyota

Lexus is in danger of becoming another Buick, a brand known and bought for being quiet, safe, reliable and comfortable. And that's about it. According to research done by IHS Global Insight, Lexus buyers are looking at the same things as Buick buyers.

"Lexuses are dolled-up Toyota appliances," said Rebecca Lindland of IHS Global Insight. "They're built for reliability and dependability, not to generate excitement."

That means attributes like driving excitement and design quality are not top priority when customers go car shopping. Worse still the average Lexus owner is 56 years-old. Comparatively the average Buick buyer is approaches 70 years of age.

"Lexus is Buick in training," said Lindland. "Lexus made its name with baby boomers. They're aging, and the average age of Lexus owners is increasing with them. Lexus hasn't been able to supplement the baby boomers' loyalty with younger buyers. They've tried with vehicles like the IS sport sedan, but they haven't been able to penetrate younger buyers."

The Japanese premium car maker may be recognising this disturbing trend, hence the recently teased Audi A3/ BMW 1 Series competitor. There are also other segments dominated by youth in which it does not play.

"Part of the problem is that Lexus doesn't have a good entry crossover SUV like the BMW X3 and Audi Q5," Lindland said. The RX 350 -- Lexus' best-selling vehicle by a wide margin -- is about the same size as those vehicles, "but it's seen as a mom-mobile, darned near a minivan," she said. "You expect it to be driven by a woman with children.

Given that the SUV is the top seller for Lexus should raise eyebrows in a market dominated by cars like the BMW 3 Series and Mercedes-Benz C-Class. Additionally, it does not seem the introduction of two new vehicles, the IS sedan and even more powerful IS-F has not helped the company to challenged its segment rivals despite critical acclaim.

Hope bears down on the HS 250h hybrid which is due to launch this fall. A serious victory will be claimed if the premium hybrid can generate half the excitement as the Toyota Prius hybrid. However, with an EPA rating of 35 mpg compared to the Prius' 51 mpg, it's already got one strike against it.

Source: freep.com

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Tags: aging demographic, Lexus clientele, Lexus HS 250h, Lexus RX 350, HS 250h, RX 350, IHS Global Insight, AutoPacific

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Comments

Deutsch100

August 31, 2009 5:51 PM

Ha ha ha! Well, I've had 2 Lexis RX400h SUVS (in between all the Benzes, BMWs, Range Rovers & Audis) and I can say that both Lexus cars were the most reliable & trouble free cars I have ever owned! My Spouse and I have easily had 30 high end cars since the mid 1990's. That being said, both Lexus cars were without a doubt the most boring, bland and testerone zapping vehicles I have ever owned or driven. It was like driving a living room sofa with 4 wheels. I think Lexus is going to have a hard time attracting younger buyers. With their new 250h, I think it is going to attract 40 something teachers, college professors and liberals. So while younger, nothing like BMW 3er and Mercedes C Class. Sorry Lexus...you are officially the Japanese Buick!!!

scratchy996

August 31, 2009 5:53 PM

they can hire a few Italians (any random Italians would do) to bring some life into these appliances or start offering free walking frames to their customers.

CDspeed

August 31, 2009 5:53 PM

A leather interior and an L on the hood does not make a serious luxury car, TOYOTA! And thats all a Lexus is, a Toyota dressed up to go out to dinner.

Renegade, your right others do it too but the article is about Lexus

Edited by user on August 31, 2009 at 7:05 PM

Renegade

August 31, 2009 6:38 PM

Every time we talk about Lexus, a twisted guy is starting bla bla Lexus is re-badged Toyota bla bla bla. WTF? It's normal to use common platforms GM is doing it, VW is doing it, Renault-Nissan is doing it, everybody is doing it. But some people who have nothing to say about a subject, say that and think that they reinvented the wheel.

Piotre_k

August 31, 2009 8:18 PM

Renegade: this bla bla isn't about sharing platforms. It's about look, feel and image of brand. Put a VW badge on an Audi and people will notice it doesn't fit the car. But do the same with Toyota badge on a Lexus and nobody will ever see the difference.

Edited by user on August 31, 2009 at 8:19 PM

wjaprep

August 31, 2009 9:34 PM

I culdnt agree w/ Piotre k and CDspeed more. and yes, GM rebadges cars like crazy, which is why I don't understand people who buy GMCs. Also, "Lexus" and VW (etc)are different. LX570/Land Crusier vs. Q7/Cayenne. point proven.

Renegade

August 31, 2009 9:55 PM

Yeah LX570 and Land Cruiser are actually good as 4x4's wile the Q7 and Cayenne are show off SUV's who are pretty bad once you leave the road. And Toyota is going against VW not Porsche, wise guy.

Edited by user on August 31, 2009 at 9:56 PM

genie

September 1, 2009 12:57 AM

Wow, Renegade, top marks for completely missing the point. The reason why the Landcruiser/LX570 is a good example of whats wrong with Lexus is because a LX570 simply IS a landcruiser with a leather interior, lots of tacky chrome and fake wood and a Lexus badge, with a 25k price increase (in Oz). Its the exact same thing GM has been doing for ages which is how GM destroyed all its luxury brands.

The Q7/Cayenne/Tourag, these cars differ because only the basic platform is shared, the rest such as engines, suspension setups, interiors and features are completely different. Its not just a 'lets skin a few cows, throw in a heap of chrome and chuck that LExus badge on, that'll be enough to charge 25k extra. Suckers.'

scratchy996

September 1, 2009 1:01 AM

actually Q7 and the Cayenne are not rebadges, the Cayenne is pretty good off road. in Japan they don't even bother rebadging Lexus , they sell them as Toyota because that is what they are and that is how they feel , that's the point.

Toyota invented Lexus to fool Americans and it works. Lexus doesn't have any original heritage and pedigree, so Toyota just transferred their DNA and added some luxurys. Audi existed before VW and continues to be Audi, same as Bugatti , Bentley and Lamborghini. all fell different even if they are owned by VW. platform sharing is one thing , shameless rebadging à la Toyota and GM is another.

wjaprep

September 1, 2009 1:52 AM

thnk u for explaining my point Genie. :)

Renegade

September 1, 2009 1:55 AM

Wrong, Lexus is sold in Japan, here's the site of Lexus Japan with prices in yen and everything. http://lexus.jp/ And who cares that the brand it's younger then the german ones, you buy the car, not the history. That's why you will probably prefer an R8 over a Corvette ZR1, you don't buy the Corvette ZR1 (witch has over 50 years of history and it's made by GM who is 100 hundred old) and buy an R8(is at the 1st gen) just because is slightly better then the ZR1 and it shares many parts with the Lambo Galardo.

Edited by user on September 1, 2009 at 1:57 AM

Edison

September 1, 2009 1:59 AM

All I know is that there is currently no Lexus that I would consider over its competition, and I am in my late 20's. It looks like others feel the same way...

scratchy996

September 1, 2009 2:46 AM

"you buy the car , not the history" of course you buy the car , but the car is bland because it has no history of it's own. it's a clone. one with added luxury , but still a clone of another bland car. go ahead and buy the car if you are a boring old man, no one is stopping you. but until Lexus changes something , the buyers will get older and older and that will only hurt it's image even more.

as for the ZR1 vs R8 thing , i give you a better example , i will rather get a Zonda F than a Ferrari Enzo even if Pagani is such a young company. Pagani builds exciting cars from day 1, they are not mindless clones.

Let's see Lexus build something more exciting (and i'm not talking about a limited edition $200k car)than it's normal competition and people , including myself, will give them another chance.until then they will only sell cars to aging Americans.

the rest of the world has a good alternative to German luxury cars, it's called Jaguar.

Edison

September 1, 2009 4:27 AM

Or Infiniti, or (albeit a little more expensive) Maserati.

HEMI426

August 31, 2009 6:13 PM

This Lexus HS 250h is pointless, 35 mpg is for, atleast a hybrid very bad. Why not make a IS hybrid, or just bring the IS220d to the usa?

nederina

August 31, 2009 6:31 PM

that means they have to compete directly with the big three - audi, bmw und benz. i think porsche is biting their nails with that problem too. welcome to the nissan gtr and audi r8 generation.

Sultan91

August 31, 2009 6:37 PM

The comment on the thread about the new RX is real..it really isnt in anyway compared to the bmw or the Mercedes SUV's...yes the IS-F was and still is a high revving beast, but one car cant put the whole brand into the spotlights again, it needs an LS-F or any model that maybe challenging the S63 AMG or S8 or any car in that segment... Really Toyota should work hard into making Lexus a new choice for the younger customers

ivanadrive

August 31, 2009 6:52 PM

Then they should stop making boring cars. Their cheapest car, the HS 250h looks like a Toyota, which is about as boring as cars can get. The only decent looking Lexus is the IS and that's out of the price range of most young people.

Siawa

August 31, 2009 7:49 PM

I share the same sentiments.

Razz

August 31, 2009 10:02 PM

I totally agree, IS is a great car but very expensive for the younger buyers ! I never thought to Lexus as an "oldman's" brand, but it makes sense .. i never saw a person under 30 (aprox) driving one.

Speaking of Toyota .. they really got out of the young clients sight when they took off the Celica from the range !! Bring back models like : Celica, MR2 and Supra .. and some younger clients will surely look after you !!

Edited by user on August 31, 2009 at 10:06 PM

teuton

August 31, 2009 8:55 PM

Yeah Lexus, keep going the hybrid route with mere badge swaps & you'll have nannies queuing up at dealers. Toyota have made nil progress in diesel technology & they fleece customers with their utilitarian tractor engines. Nor have they made leaps with petrol engineering, a la Volkswagen. BTW, playing the reliability card just doesn't cut it Toyota, sorry Lexus!

wjaprep

August 31, 2009 9:29 PM

yeh, srry Lexus, but ur cars are boring rebadged Toyotas, and the RX is totally a mom mobile, Lexus shuld just stick to whts its good at, making rebadged Toyotas tht want to one day b Mercedes. and "Lexuses are dolled-up Toyota appliances," is the best quotes Ive read all year.

Dolomight 74-86

August 31, 2009 9:39 PM

In your face Toyota! That's what you get for killing the ALTEZZA. You guys need to get back in the WRC and outta nascar. Throw your money into true performance R&D and not into how to fit a lazyboy into a corolla any you'll get the youth market back. And while your at it Bring back the celica gt4, that was the Shiznat.

deciofp

August 31, 2009 11:48 PM

At least they have admited! Now lets wait to see what they'll do...

But still! This so talked LFA! When we'll see some test of it??? So many time developing it, it must be perfect by now!

Wickedated

September 1, 2009 12:53 AM

bring the LF-A to the market before the average buyer becomes 60years old

scratchy996

September 1, 2009 1:02 AM

how many 20 year olds do you think can afford a $200K car ?

nederina

September 1, 2009 1:03 AM

LEXUS - Luxury EXport United States

Captain Scarlett

September 1, 2009 1:32 AM

I rad .. autocar i think, with the hybrid were returning aorund 25 mpg on the motorway.. so in terms of saving on petrol, what's the point.

The thing is that apart from the U.S. Lexus seems to be 'the alternative' choice ... to Mercedes, BMW, Audi and Jaguar.

The LS is a hideous looking thing and always has been, the GS is a bit of a non starter, and the IS .. is still catching up with the big four as well.

If only Lexus would stop building cars that mimic Toyota.. that would be a start. The LS and GS have so much 'Camary' about them! And they should also stop trying to 'out button' the competition.

MaxiTI

September 1, 2009 6:57 AM

I try not to read these comments, but I always get sucked in by people's bias. I will agree that because I consider myself a "car person", I would not buy any current model of Toyota or Lexus. But that said, I think it is obvious that Toyota are a hugely successful global car manufacturer. This cannot be denied.

Do you really not know why? There are people out there that think of a car as getting from "A to B". They want reliable and safe transport. Not a car they pay good money for that leaks oil after a year (or less) and electronics that do anything but what they are designed to do.

What I really want to ask is why can't other manufacturers increase their reliability? Haven't Europe and Detroit been doing it long enough? Maybe they might actually learn something from Toyota, and Japan in general. I mean even Hyundai, in it's short life, has evolved. Is this too much of a challenge to your thinking?

And it should also be said that there is not one other manufacturer in the world that has more models on the market with hybrid technology than Toyota/Lexus. Not one. What have they been doing for the last decade?

Edited by user on September 1, 2009 at 6:59 AM

scratchy996

September 1, 2009 1:23 PM

what exactly is the big deal with those hybrids if small diesels get better fuel economy ? you think people buy hybrids to save the planet ? they just buy them because they are trendy. to produce those batteries alone is more harmful to the planet than diesel fuel.

nederina

September 1, 2009 9:49 AM

who needs hybrid when you go full electric in a couple of years time. unlike the rest of the world, the europeans are currently using diesel for lower emissions and greater fuel consumption than a hybrid car and more joyful to drive.

we don't really need a hybrid technology, yes it is a great concept but flawed at the same time. we rather have a BMW 320d than say a Prius. nissan engineers are skipping the whole hybrid thing by going fully electric while bmw, mercedes and honda are betting on the hydrogen. clearly the toyota people are missing something.

here's the reality. lexus needs to compete in the ever challenging market in europe. 1.they don't have a good diesel engines at the moment. 2.lexus cars are ultimately dull and has no character. 3.their cars are very expensive. 4.lack driving dynamics or involvements. 5.old people drives them. 6.no motorsport or heritage. 7.people who drives lexus or toyota are such bad drivers. 8.because it is designed, engineered and build by toyota - don't believe me? check out at every lexus doorseals; it says build by toyota motor corporation.

MaxiTI

September 1, 2009 10:44 AM

Again, I reiterate. What have they been doing for the last decade? You think that diesel is good for the environment, do you?

The flaw in your argument is that you are speaking solely with consideration for Europe. Not the world outside of it. Which might I add is rather populace.

Where do you happen to think electricity comes from? Hybrid technology is the most logical next step. All you're talking about doing is shifting greenhouse emissions elsewhere.

Innovation is not simply about styling. There's more to cars than what you're taliking about. Not to mention that my original argument was to do with practicality.

Believe it or not, European engineered cars don't automatically translate to "good cars" for the rest of the world. You know, that few billion other people?

Edited by user on September 1, 2009 at 10:47 AM

nederina

September 1, 2009 12:01 PM

i am a motoring editor and publishes my own car magazine. i have driven many new cars and been sent to various countries to meet the engineers and to test their creations. hybrid is just a bridge from petrol to a full-electric car. there is no doubt that toyota is making big progress with the hybrid technology but now has been overtaken with the rest. clearly you are stuck in your own nutshell. hybrid is so yesterday, and enter the march of the e-vehicles. still not satisfied? i'll see you at the tokyo show.

MaxiTI

September 1, 2009 12:36 PM

So you agree? It's the logical next step. As you say, a bridge from petrol to electric vehicles. Yes, there will be electric and hydrogen powered vehicles on the market in the next few years, but where is the infrastructure? More importantly, they are not on the market.

Again, you've missed the main point of my argument. May I ask what magazine? Personally, I doubt that you'll be willing to divulge after your misguided argument. In any case, time will tell in what direction cars are heading. I think we will both agree that it's well beyond us.

Edited by user on September 1, 2009 at 12:53 PM

scratchy996

September 1, 2009 1:33 PM

i like how Americans think they are "the rest of the world".

do you think South America and Africa care about hybrids ? and btw , Europe built hybrids in the 19th century. there wasn't a market for them so they dropped them. after 100 years when the batteries evolved the Japs built some hybrid cars and fanboys act like it's the second coming of Jesus.

no one says the technology in Lexus is bad , they are just bland and boring cars. and Toyota are just means to get you from A to B. that's not a bad thing for people who need such things , but don't expect car enthusiasts to like those cars.

nederina

September 1, 2009 2:05 PM

watch this, i rest my case http://www.timesonline.co.uk/tol/driving/used_car_reviews/article3552994.ece

Siawa

September 1, 2009 6:48 PM

Thanks nederina for the video. I can finally show this to my wife so she can quit bugging me about getting Prius for it's "milage".

Edited by user on September 1, 2009 at 6:51 PM

dnipete

September 1, 2009 10:13 AM

How many vehicles are sold by Toyota/Lexus anually? More or less 9M.

How many Toyota/Lexus bashers on this site? Maybe 9 or 90?

Which is the biggest? Now why can't the Europeans beat the crap out of Toyota/Lexus?

Nuff said!!!

Michael

September 1, 2009 1:28 PM

9 million vehicles sold each year by Toyota is history now. They sold in the first half of this year "only" 3.56 million units. This could translate into 7 million and something by the end of the year...

scratchy996

September 1, 2009 1:35 PM

that's just stupid . How many European car companies are there ? a lot , If let's say they merge , who sells more then ?

Nuff said !!!

cnpgs

September 1, 2009 1:59 PM

Let's put it this way...if Lexus were to suddenly close down, would the world lose anything? No...because Lexus's are really rebadged Toyotas. I was shocked recently when I saw an imported 'RX' from Japan, with gold Toyota badges...so if Lexus closes down, we won't lose any racing excitement, any design excitement, any innovation or indeed anything else. The fact remains that Lexus was set up by a corporation (Toyota) to copy Mercedes and make money. That's probably why the brand has no soul or passion. I'm sorry, but they can become the most reliable cars in the world and I still wouldn't touch them...cheap wood, cheap buttons (the starter buttons are found, I believe, on Yaris's...) and plastics and leather...it's like driving a home appliance, as said above, and not premium cars. If you want reliability, comfort, the latest tech, safety and prestige, buy a Merc. The difference is that they don't copy from other brands, they've come up with a considerable number of world-firsts (just last week they said that they will be the first to mass-produce fuel cell vehicles in the form of the B-Class...), they're quite good looking, they're very tough cars, they've got great attention to detail [they even measure how much each button needs to be depressed (0.8 mm on a C-Class, for instance)], they have pedigree and although they're comfortable and refined, they still are quite exciting, they involve the driver and they also tickle his senses...

wjaprep

September 5, 2009 1:18 AM

"The fact remains that Lexus was set up by a corporation (Toyota) to copy Mercedes and make money"

dnt take this as to shocking...

but I think I might love you

radmeister

September 2, 2009 7:15 AM

It doesn't matter what Toyota does, let's face it even Toyota is not that popular amongst young people. The problem if you want to break that 20-30yo range they have to be less Japanese. Sex sells, who thinks japan and sex? We think sony Playstations and fancy cellphones. When you think of gorgeous women skankidly dressed in fine clothing, alcohol, drugs, crazy parties and raves you think EUROPE! Japs are too conservative, us youths want to be destructive! So in my opinion it doesn't matter what car they put out, there is no correlation between youthfullness, sex, freedom and japan, so unless they stop being japanese nothing will change. Instead of thinking of taking the youth market they should be thinking of how to take more from their 56yo market.

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