Lexus in danger of losing space in the luxury market

Posted on Monday, 15 October 2007 , 19:10:24 byEmil

Filed under lexusdangerlosingluxurymarketBMW

Lexus in danger of losing space in the luxury market

Lexus has been, since 2000, the best-selling luxury name — outselling its closest competitor by about 50,000 autos in 2006 — but the luxury brand could be in danger of losing the market share really soon, perhaps in 2015.

Perhaps the greatest concern for Lexus is the high average age for the entry-level car. `The ES 350`s average age is 61, and their number-one occupation is retired` said the former Lexus General Manager – Jim Farley.

`As boomers retire or pass away, this younger group will be much more representative` says Milton Pedraza, the CEO in Luxury Institute, a NY market researcher. `They will be the bulk of consumers by 2015, replacing the baby boomers`.

Lexus hopes the IS and RX will attract younger clients. `The ES 350 is not going to attract a 40- or 45-year-old` Tom Libby – an analyst told Automotive News. `They need the IS and RX to appeal to younger buyers`. `This car is not aimed at anyone buying our cars today` Farley said at the auto`s media introduction. `This car was not supposed to be`.