Market Insight: Lexus challenges big three

EARLIER this year, Market Insight covered BMW’s growing lead in Australia’s premium car market but now that the end of 2024 is in sight it is clear that Lexus is increasingly encroaching on the dominance of Germany’s ‘big three’ luxury players. 

The Japanese premium importer’s growing presence in the marketplace has been particularly strong in the popular medium SUV segment. 

Against its 2022 result, Lexus has seen a sharp uptick in vehicle sales, more than doubling its calendar year figure in 2023, and with continued positive results in 2024 (based on VFACTS results supplied on November 6). 

The brand has averaged 1113 sales per month across the 2024 calendar year, ranking it in fourth position behind BMW (2166 units per month), Mercedes-Benz (1678 sales), and closing in on Audi (1236 deliveries). 

Lexus holds a comfortable lead over Volvo (776 per month) and Land Rover (669), and is well ahead of Jaguar with just 66 sales per calendar month recorded across 2024. 

The SUV market is where Lexus has put on a solid performance, its growing range of vehicles driving healthy growth across small (over $45K), medium (over $60K), and large (over $80K) SUV segments. 

Lexus has two entrants in the premium small SUV segment, the LBX and UX respectively notching up 1227 and 716 year-to-date sales apiece for a total of 7.9 market share points. 

Though the numbers are well behind their nearest rivals in the segment, it is worth remembering that the LBX is an new entrant in the class, arriving in local showrooms just seven months ago. 

Elsewhere in the category, the Audi Q3 is top of the pops with 4128 deliveries, ahead of the BMW X1 (3814), Volvo XC40 (2726), Mercedes-Benz GLA-Class (2498), Volvo EX30 (1856), BMW X2 (1535), and Mercedes-Benz EQA (915). 

By contrast, the Lexus NX is dominant in the stronger-selling premium medium SUV segment where its 5102 YTD sales put the BMW X3 in a distant second on 2744 deliveries, followed by the Mercedes-Benz GLC (2393) and GLC Coupe (1239) which also fare strongly, as do the Audi Q5 (2109), Volvo XC60 (1617), and Mercedes-Benz GLB (1056). 

The Land Rover Defender (2755), BMW X5 (2612), and Range Rover Sport (1847) outsell the Lexus RX (1726) in the premium large SUV segment so far in 2024. 

However, Lexus holds strong ground here over the Mercedes-Benz GLE (1213) and EQE (726), as well as Audi’s Q7 (668) and Q8 (535), contributing again to the segment with its newer, ell-electric RZ with 189 year-to-date sales. 

But its perhaps a “best until last” scenario that sees a new entrant for the Lexus brand achieving phenomenal sales with just over a month in the market. 

The Lexus GX – which joins the Lexus LX (429 year-to-date sales) in the premium upper large SUV segment – has sold 580 units since its local debut, already taking a 15.4 per cent share of the action. 

It ranks behind only the larger BMW X7 (915) and full-size Range Rover (599) in this lofty segment, and places well ahead of the Mercedes-Benz GLS (379), Mercedes-Benz G-Class (343), Mercedes-Benz EQS SUV (123) and BMW XM (113). 

Lexus has achieved SUV sales of 9969 units to the end of October, against Audi (8550), BMW (13,475), Genesis (1062), Jaguar (536), Land Rover (6689), Mercedes-Benz (11,604), and Volvo (7395). 

Delving further into the brand’s success, 892 sales of the Lexus ES (medium passenger over $60K segment) for the year-to-date ending October, gives the model a 4.4 per cent share of the segment and a solid fifth-place ranking. 

This segment is dominated by the Tesla Model 3 with 10,600 deliveries to the end of October and 52.7 market share points, ahead of the BMW 3 Series (2156), BMW i4 (1734) and the Mercedes-Benz C-Class which used to lead the segment (1714). 

In the limo market, the Lexus LS found 10 buyers YTD for a 4.0 per cent share of the category, behind the BMW 7 Series (36) and Mercedes-Benz S-Class (35), the BMW i7 (31), Mercedes-Benz EQS (20) and BMW 8 Series GranCoupe (13), but ahead of the Audi A8 (8). 

In the sportscars over $80K segment, the Lexus LC is behind the pack with just 47 sold year-to-date. The mismatched segment – which focuses on price and not size – sees the BMW 2 Series (1355) ahead of the BMW 4 Series (667), and ahead of the Mercedes-Benz CLE-Class (385). 

Other segment rivals include the Audi A5 (111), BMW Z4 (81), and Audi TT (47). 

Lexus sales against premium segment rivals^: 

*YTD sales to the end of October.