7:00 am, December 6, 2022
The European boss of Toyota has said that 2022 has been a ‘very tough’ year for its sister premium firm Lexus.
Against the backdrop of increasing Toyota sales, Lexus has taken quite a hit. The firm wouldn’t go into figures for Europe but said that its sales so far in 2022 had been ‘significantly lower’ than last year.
One key cause for hardship at Lexus has been the conflict in Ukraine. As with many foreign car manufacturers, Lexus withdrew completely from Russia – a market that was previously the largest for Lexus in Europe, accounting for more than a quarter of its sales in the continent.
It also temporarily suspended its retailing in Ukraine, though Matt Harrison, president and CEO of Toyota Europe, said that sales had recently ‘successfully restarted’ in the region and that its ‘resilient Ukrainian network’ were now operating at 50 per cent of last year’s sales.
Harrison said: ‘For Lexus there’s no denying that 2022 has been a very tough year with sales significantly lower than last year.
‘There’s been the conflict in the east, and in the west we have simply not been able to keep supply in line with demand due to parts shortages, and with all Lexus models produced for Europe in Japan, we’ve experienced significant production cuts, including on the new generation Lexus NX – a model central to our growth aspirations this year.’
Harrison added that Lexus order banks ‘remain high’ and that he was ‘confident’ that the brand would record growth when supply limitations ease.
Next year sees the introduction of a number of important Lexus models, including a new generation RX – the brand’s largest SUV – as well as the important new electric RZ SUV.
There will also be a significant update to the UX 300e to bolster the electric range of what is currently its only EV, as well as a new compact crossover later in the year that is poised to provide a major boost to sales.
