Best Selling Luxury Brand In The U.S.: Is Lexus Buying The Title?
Bloomberg reports that because Lexus made sales gains (mainly through incentives) in October, Lexus is now back in contention to keep its title of “best selling luxury brand in the United States”.
Earlier in the year, there was a real possibility that it would be a 2 horse race, BMW and Mercedes-Benz. But because of the good October Lexus had, it’s now a 3 horse race.
Like I mentioned earlier, a key reason behind this sales growth is heavy discounting. In October, Lexus spent $2,152 per vehicle. Compare that to a year earlier, when Lexus spent only $923 per vehicle.
Even BMW was surprised at Lexus’ comeback. “Toyota has been much more aggressive than they’ve ever been,” said Jim O’Donnell, President of BMW’s North America, “We’ve not got Lexus joining the fray where they’ve always stood on the sideline and sort of watched.” In the month of October, Lexus sold 21,091 units, Mercedes-Benz sold 18,351 and BMW sold 19,272. This puts year to date sales at Lexus: 183,529, Mercedes-Benz: 178,080 and BMW: 176,736. Looks like this one is going down to the wire. See you at the end of December!