Toyota 2006 Annual Report Download - page 32

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30
Since its 1989 launch in North America, Lexus has won overwhelm-
ing praise from customers and established an unassailable position
as a prestige brand. To build a truly global premium brand, Toyota is
taking new measures to catapult Lexus forward.
Market Strategy
Move from North America to Europe,
Asia, and Japan
Aiming to take Lexus to the next
level as a global premium brand,
we stepped up marketing in Europe
and Asia to supplement the brand’s
August 2005 launch in Japan. The
standing of Lexus as the number
one luxury brand in North America
is unquestioned, with the region
accounting for almost 80%, or
319,000 units, of the 415,000 Lexus
vehicles sold worldwide in fiscal
2006. Now, we will expand sales
networks to increase Lexus business
in regions outside North America.
In Europe, we will rapidly lift
sales past the 60,000-vehicle
mark—from the fiscal 2006 level of
35,000 units—by strengthening
and adding to our network of dedi-
cated Lexus dealers and bolstering
advertising.
In Asia, particularly in China’s
fast-growing automotive market,
we will open additional dedicated
Lexus dealers. By targeting major
cities, we will expand our existing
network of approximately 10 deal-
ers through stepped-up develop-
ment of the network in China.
In Japan, approximately 15,000
vehicles were sold between August
2005, when Lexus debuted, and
March 2006. Plans call for expan-
sion of the network of dedicated
Lexus dealers from the initial 151 to
about 180.
Product Strategy
Pursue true luxury to create
unmatched products
The Lexus GS and the Lexus IS,
which we fully remodeled in time
for the premiere of Lexus in Japan,
posted solid sales in the mainstay
North American market. In April
2006, we remodeled the Lexus ES,
which features enhanced comfort,
safety, and driving performance.
Under the Lexus badge, our mis-
sion is to create high-end automo-
biles with new value that is in step
with the 21st century. To that end,
we are eagerly incorporating hybrid
systems into Lexus models to achieve
radically differentiated driving and
200
100
400
300
500
’02 ’03 ’04 ’05 ’06
FY
Lexus Vehicle Sales
(Thousands of units)
North America Europe Japan
Others
0
Lexus debuted in Japan
Business Overview
Automotive Operations LEXUS