Discussion on WardsAuto Podcast: Tesla, Import Taxes, and Upcoming Luxury Lexus SUV
In the ever-evolving world of automobiles, Lexus, Toyota's luxury brand, is making a significant move by entering the global market for luxury SUVs priced between $90,000 and $125,000. This market, forecasted to grow at a 12% compound rate over the next decade, is already crowded with competitors such as Mercedes-Benz, BMW, Cadillac, Lincoln, Land Rover, and other notable brands.
Lexus's foray into this competitive arena is led by the introduction of the LX 700h, a potential game-changer in the luxury SUV segment. While the specific features that set the LX 700h apart from its competitors are yet to be detailed, it's clear that Lexus is aiming to carve out a unique niche in this market.
In the U.S., the Lexus LX series saw a slight decrease in sales in 2024, with 6,830 LX SUVs sold, compared to the previous year. However, the introduction of the hybrid variant, LX 700h, could potentially change this trend.
The LX 700h is poised to challenge not only the established players in the U.S. but also international brands. Infiniti, Nissan's premium brand, and Acura, Honda’s luxury division, are identified as key competitors, alongside the unnamed German luxury automakers, typically including BMW, Mercedes-Benz, and Audi.
The market for luxury SUVs is driven by positive trends, with new model launches and electrification playing significant roles. Infiniti, for instance, is actively revitalizing its SUV lineup, aiming to grow within the competitive luxury SUV market.
The LX 700h, as a flagship model, could potentially be priced higher than the highest price for the Lexus LX model line in 2025 ($141,350). The sales figures for the LX 700h in the U.S. for 2023 and 2024 are not yet available.
In a recent WardsAuto Podcast, David Kiley, the podcast host, discussed the new Lexus flagship with Richard Hollingsworth, Lexus Product Manager, shedding light on the brand's strategic moves in the luxury SUV market. The LX 700h, with its starting price of $115,350, is set to make its mark in the luxury automotive landscape.
As the LX 700h makes its debut, it's an exciting time for luxury SUV enthusiasts, as the market shows signs of sustained growth, driven by new model launches and electrification trends. The LX 700h's unique features and specifications, yet to be revealed, promise to add another layer of intrigue to this growing segment.
