The Lexus IS Is Competing Again

In the United States, Lexus has sold in excess of 5000 copies of the IS twice in the last nine months, having not done so even once since August 2008.

Five times in the last nine months, Lexus has sold more than 4000 copies, having only sold more than 4000 ISs once in the previous 44 months.

U.S. Lexus IS volume has increased on a year-over-year basis in each of the last 14 months, although six of those year-over-year comparisons include prior-year results from the IS’s worst sales year (2012) since 2005.

In its segment, the IS trails only the premium-brand-leading BMW 3-Series and the Mercedes-Benz C-Class.

Granted, the Audi A4, though relatively appealing even now, is as old as the hills. Also, while Infiniti’s Q50 trails the IS by 10,305 units, the Q50/G sedan combo is narrowly ahead of the Lexus.

Cadillac ATS volume has plunged 20% so far this year as total Cadillac passenger car volume has tumbled 15%. Volvo S60 sales are down 15% to 14,684 units, 18,743 sales back of the IS. The S60 trailed the IS by just 1672 units at this point one year ago.

The tide has clearly turned. In both 2011 and 2012, even Acura’s TSX was a more popular choice than the IS. Year-to-date IS sales in America are up 77%. The rapid growth rate has slowed as year-over-year comparisons now include results from both years, both 2014 and 2013, of the current, third-generation IS. August sales jumped 20% to 5312, more than the figure managed by the traditional second-ranked C-Class.

That C-Class, however, is now being replaced by a much more competitive, wildly more modern C. Will that car put the brakes on the IS’s ascent? It’s possible. One could argue that the brash IS with its massive spindle grille and controversial interior targets a different buyer. But we don’t determine which vehicles consumers will decide to cross-shop.

The IS has nevertheless regained the status of a major player in the category. Lexus is on pace for the IS’s first year since 2007 with more than 50,000 sales. Not surprisingly, the IS has once again become important to traditionally RX-dependant Lexus. Through the first eight months of 2013, the IS accounted for just 11% of Lexus’s U.S. volume; the RX and ES 66%.

The RX/ES portion has fallen to 58% in 2014, however, as the IS now generates 17% of Lexus volume. You’re not surprised to learn, therefore, that Lexus outsold BMW and Mercedes-Benz in both July and August.

One thing is certain, the IS is not close to challenging the top-selling BMW in terms of U.S. sales. No entry-level premium sports sedan is, nor are any about to. The 3-Series range is massive, from the 320i sedan which undercuts the base IS by a few thousand dollars, to hatchback versions of both the 3-Series and 4-Series (which BMW USA still includes in the 3er’s total), countless powertrain options, and even a wagon. Not that BMW necessarily needs such broad appeal for the 3-Series to top the sales charts. The margins of victory are typically fairly large.