Toyota is currently evaluating the possibility of a small Lexus SUV-like vehicle, despite earlier stands that a compact vehicle would diminish the Lexus brand and overlap with Toyota-badged vehicles.
“A small Lexus SUV could be a response to the urbanization of Gen Y buyers and empty-nest boomers. Toyota’s advanced product strategy group is studying a demographic trend – people who are sick of the suburbs, but who don’t want to give up the utility of their SUV. A small luxury SUV might be the right product for that environment,” says Jim Lentz, Toyota Motor Sales U.S.A. president.
If a compact SUV is built, Lentz says it would most likely be priced in the upper half of the US$30,000 price range, as if the car is priced in the low 30s it would sacrifice too many luxury features to hit the price. This is tricky as the mid-sized Lexus RX350 is already priced at about US$38,000 in the US market.