Lexus – premium brand or just an expensive Toyota?

Lexus – premium brand or just an expensive Toyota?

I was at the traffic lights the other day when something dawned on me. I was in a two-seat Toyota with an engine behind my back. Obscuring my entire forward view was a Toyota Apartment a.k.a. Alphard Executive Lounge. Next to the luxury MPV was a Toyota Hilux. I turned to the left and saw a Camry, the nice new one in pearl white.

All of us know it, but that traffic light moment reminded me that Toyota makes a lot of things, from the most desirable hot hatch in town to Hong Kong minibuses, and everything in between. For every premium German model, there’s a Japanese equivalent from Lexus. If you were Japanese, you would have known all along that Toyota makes luxury saloons, but this was an alien concept for the rest of the world back in the 90s.

Toyota was known for its trusty family sedans, with millions opting for safe and well-made saloons like the Corolla and Camry. Inexpensive and reliable to a fault, they’ve become household names. But if you’ve done well and wanted to move up the car ladder, you’d be heading to a German showroom. Even if you wanted to stick with Toyota, they’d have nothing to offer you other than a big old Avalon.

Lexus – premium brand or just an expensive Toyota?

Like Seiko in the 1960s, Toyota wasn’t content making tonnes of inexpensive cars, it wanted to play with the best in the business and beat them at their game. For the Japanese watchmaker, it was the Swiss brands in the chronometer competitions; for Toyota it was the German premium stalwarts. You know who they are.

Boosted by Japan’s bubble economy in the late 80s and early 90s, the country’s car giants set out to conquer the world. On the performance front, this era created some of the modern classics that are legends today (Honda NSX was born in 1990, Mazda RX-7 FD in 1991, A80 Toyota Supra in 1993, R32 Nissan Skyline GT-R in 1989), and on the luxury side, brands like Acura, Infiniti and Lexus were born. The money was there, the confidence was high.

Toyota didn’t dip its toes into premium waters with Lexus, it dived straight into the deep end. By that we mean the flagship limo class with the LS 400 in 1989. Like its compatriots, Toyota’s premium brand targeted the US market and it didn’t take Lexus very long to top overall premium charts there, just a decade.

Lexus – premium brand or just an expensive Toyota?

Lexus’ 2019 US sales of nearly 300k was more than Acura and Infiniti combined, and just below Mercedes

Today, Lexus is mixing it up with Mercedes-Benz and BMW in North America. Its 2019 US sales of 298,114 units is just behind that of the three-pointed star (316,094 units, excluding commercial vans) and the propeller badge (324,826 units), and is way ahead of Acura (158,934) and Infiniti (117,708).

With the American mission achieved, the next step was to go global, and the big shift came in 2005, when Lexus became a separate entity from its giant parent (it was a division since day one), and was finally launched in Japan – that’s right, before 2005, Lexus cars were not sold in the country where they were made. It was from here that Lexus really went its own way in terms of products and design. The marque officially arrived in Malaysia in 2006.

Being a right-hand-drive market with a penchant for JDM cars, we’re familiar with the early Lexus cars that were sold in Japan as Toyotas. The Toyota Harrier (Lexus RX) is the most famous of them all, while car fans would know the Altezza (Lexus IS), Aristo (Lexus GS) and Celsior (Lexus LS) sedans. This association with Toyota models is the reason why L-badged cars were described as “just an expensive Toyota” (or something to that end) by some.

The first two gens of the Lexus RX-Toyota Harrier were twins, but today’s SUVs are completely different cars

While JDM Toyotas are held in high regard by the market, that perception is not something positive for a premium brand seeking its own identity. That view is no longer so prevalent today, simply because Lexus and Toyota have not been sharing models for some time now. Also, it’s pretty obvious that Lexus design significantly differs from Toyota – the premium brand has also created for itself one of most recognisable signature looks in the market, centred on the spindle grille.

Speaking of the Toyota Harrier/Lexus RX, both brands parted ways after the second-gen XU30today’s Lexus RX is the second standalone RX after the third-gen AL10, and has no relations to the Toyota Harrier, which entered into a new generation this year (called Venza in US). Similarly, there’s have been no Toyota equivalent of the Lexus IS since the second-gen XE20. Lexus’ latest and smallest SUV, the UX, is similarly unique to the brand.

Lexus design isn’t just differentiated from Toyota, but of late, its premium peers from Germany. Compared to the equivalent Mercedes-Benz, BMW or Audi, Lexus models are typically sharper and/or more sculptured, a contrast to the safer approach taken by the Europeans.

The bold approach also extends to cabin design and choice of materials. Examples of the latter range from the UX 200’s Japanese washi paper-inspired dash top surface to the LS’ Kiriko cut glass door trim and origami hand-folded pleats on the door cards. It feels almost wrong to merely call the latter door cards. The perceived quality and attention to detail of Lexus interiors vis-à-vis other premium brands is easier seen and felt than explained.

In terms of design, Lexus has been going on its own very Japanese path – sure, doing that means you won’t please everyone, but distinct identity and boldness has to be celebrated. Have you wondered why BMW is doing what they have been doing to those kidney grilles?

The differences go beyond the top hat. Lexus has its own versions of platforms shared with Toyota, with specific tuning and hardware to suit premium applications. This is where detractors might harp on, but platform sharing has been part of the car industry for some time now, and is here to stay. Economies of scale is a desirable thing, and the Volkswagen Group – which has Audi and Porsche in its stable of brands – are masters of the sharing game.

Lexus – premium brand or just an expensive Toyota?

The same principles apply to powertrains. It’s not cheap to come up with something new, so when you do it, maximise its use – that’s the idea behind it. We have no problems with that, provided that the final product is par for the course the car is competing in.

A case in point is the Lexus ES – while its FWD underpinnings is also found in the XV70 Camry, the Lexus is larger, more luxurious and looks like a junior LS. Nice as the Camry is, the Lexus feels more special.

Most Lexus models are engineered to be true premium cars from the ground up, but there’s one (rather big) elephant in the room, and it’s the Lexus LM. Now open for booking in Malaysia, the LM is obviously based on the Toyota Alphard, and is aimed at China and other Asian markets. The luxury MPV is a thing in our side of the pond and not elsewhere, which is why the LM is not a global product.

Based on the Alphard, the Lexus LM is a regional curio; the LS limo is the marque’s global flagship model

The LM may be based on a Toyota, but to top the Alphard Royal Lounge (a four-seater, a step up from the already plush Executive Lounge) is quite a feat. Lexus saw a gap in the market and went for it – time will tell if the bet is successful. We’re not quite sure what to make of it, but the LM is an anomaly, a regional curio of a model.

The premium car experience is more than just the car itself, and among premium brands, it’s perhaps Lexus that understands this the best. From the way the showrooms look and feel, to the attention from personnel, Lexus has been known to provide a feel good factor that’s second to none in the premium segment. Just ask their customers, especially those who have also owned a Continental peer.

In terms of product and branding, it’s obvious why Lexus wants to distance itself from its mass market parent, but if you ask me, there’s one Toyota element they should wear with pride – reliability. IMHO, that’s a strong and unique selling point for the brand, in its segment, against its main rivals.

Malaysia is a unique market where our tax structure favours locally-assembled cars, and both Mercedes-Benz and BMW have used CKD + EEV + hybrid incentives to their advantage. With a full CBU Japan range, Lexus often competes with a price disadvantage (save for that hybrid tax-free window in 2011-2013 where they sold loads of CT 200h hatchbacks), but as discussed above, Lexus brings something good and unique to the premium table.

So, what do you think of Lexus as a premium brand next to the Germans? It’s a good thing for me, but do you see its Japanese/Toyota roots as a positive point or a detraction?

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Finese on Dec 24, 2020 at 1:10 pm

    Finest Japanese Craftmanship

    Like or Dislike: Thumb up 46 Thumb down 5
    • Rakyat Malaysia on Dec 24, 2020 at 1:32 pm

      Correct, well said Danny. Proton back in 1985, should rebadged Toyota instead of mitsubishi..

      Like or Dislike: Thumb up 19 Thumb down 8
      • ex VGM staff on Dec 24, 2020 at 2:38 pm

        mahathir wanted Toyota actually, but Toyota declined since they have to stop Corolla sales to make way for Proton Corolla.

        Like or Dislike: Thumb up 18 Thumb down 1
        • penipu ex VGM staff on Dec 26, 2020 at 1:02 am

          Dont BS lah, in fact no foreign company want to built assembly plant in Malaysia because in 80s there still zero tax for imported vehicle and our population is smaller compare to Thai and Indonesia. The national car project only came when Mahathir willing to spend own money to attract them and promise better return for their investment.

          Like or Dislike: Thumb up 6 Thumb down 3
      • donno on Dec 24, 2020 at 2:41 pm

        all peroduas basically has Toyota DNA anyway. even the Toyota Rush is now built in Perodua factory.

        Like or Dislike: Thumb up 10 Thumb down 2
        • Vito Aditya on Dec 24, 2020 at 4:17 pm

          The Rush is a Daihatsu from birth, though Toyota co-developed it. So that means Perodua is basically a Daihatsu engineered by Malaysians.

          Like or Dislike: Thumb up 8 Thumb down 6
          • Basically Perodua is a mere rebadger for Daihatsu lah. Their status as national carmaker should be revoked immediately!

            Like or Dislike: Thumb up 25 Thumb down 5
          • sohai on Dec 24, 2020 at 11:11 pm

            Axia and Bezza are fully Msian homegrown engineered models. Myvi rebadged by Daihatsu sirion too

            Like or Dislike: Thumb up 8 Thumb down 4
          • Celup King on Dec 24, 2020 at 11:37 pm

            Correction: Daihatsu rebadged by Malaysians

            Like or Dislike: Thumb up 5 Thumb down 0
          • PEJUANG on Dec 25, 2020 at 12:34 am

            Celup king, the sirion in indo is in fact the Myvi of malaysia with a daihatsu badge. They rebadged our myvi.

            Like or Dislike: Thumb up 5 Thumb down 1
          • @sohai
            Axia is merely a rebadged Daihatsu Mira and Bezza is just Axia with extended boot, in other words still not homegrown like Saga, Persona, et al.

            @Pejuang
            Boon in Indon is rebadged from Myvi which is a rebadged Daihatsu Boon. So who rebadged whom?

            Like or Dislike: Thumb up 7 Thumb down 0
          • Engineer on Dec 25, 2020 at 12:24 pm

            Read this:
            https://paultan.org/2020/12/24/proton-x50-asean-ncap-tests-resulted-in-key-safety-changes-for-rhd-conversion-led-by-malaysian-rd/

            There is a lot more engineering effort put into X50 than it is into Bezza.

            Like or Dislike: Thumb up 3 Thumb down 2
        • All Perodua basically has Daihatsu DNA, the Toyota own Daihatsu so all Toyota compact car used Daihatsu platform and design.

          Like or Dislike: Thumb up 2 Thumb down 1
    • AutoFrenz (the original) on Dec 24, 2020 at 1:34 pm

      Lexus is luxury…the feeling is different…it’s like wearing giorgio armani and armani exchange…you can feel the difference…and platform sharing within the same group is normal…just look at vw group products..vw touareg, audi q7, porche cayenne, bentley bentayga and lambo urus…

      Like or Dislike: Thumb up 40 Thumb down 5
      • donno on Dec 24, 2020 at 2:43 pm

        yeah the VW group large SUV is basically 90% the same car underneath.

        Like or Dislike: Thumb up 9 Thumb down 0
      • Lexus is same level as Geely. High tech but high prices too and none the prestige.

        Like or Dislike: Thumb up 14 Thumb down 37
    • Jonn Dol on Dec 24, 2020 at 5:05 pm

      While Lexus is a match for the Germans in terms of perceived luxury built quality, nowadays Lexus is lacking the huge model & powertrain range that the German makers have. Plus the Germans are still the trend setters in the premium market.

      Like or Dislike: Thumb up 17 Thumb down 2
  • Don’t have same ‘aura’ as the German. BUT i would buy 1 if i can afford one because of it reliability. BUT if you can afford this price range, does reliability really matter?

    Like or Dislike: Thumb up 25 Thumb down 6
    • Toyota iQ on Dec 24, 2020 at 2:18 pm

      If a same Toyota is rebadged by European brand, it will be sky high priced for the same craftmanship.

      Take Aston Martin Cynet as example. Its easily beyond Daimler’s SmartForTwo Quality, Packaging, and Technology.

      Like or Dislike: Thumb up 10 Thumb down 1
    • Datuk on Dec 24, 2020 at 2:21 pm

      German car has tough charisma like a Carpenter king.
      Lexus has charisma of a Fine living.

      Each of its own.

      Like or Dislike: Thumb up 20 Thumb down 1
    • Korean Fan on Dec 24, 2020 at 3:19 pm

      Yes, it still matter because not all rich people printing money for free. They also need to jave peace of mind with their car.

      Like or Dislike: Thumb up 9 Thumb down 1
  • FudgeMeSideways on Dec 24, 2020 at 1:55 pm

    But Lexus prices in Malaysia is unjustifiably more than BMW, Merc or Audi of the same class. And i’m not talking about biskut Lexus.

    Like or Dislike: Thumb up 34 Thumb down 4
    • GenY AEB on Dec 24, 2020 at 2:22 pm

      https://paultan.org/2020/11/13/bmw-is-looking-to-extend-its-technical-cooperation-with-toyota-beyond-2025-says-ceo-oliver-zipse/

      BMW will adopt Toyota’s technology

      1 step below Lexus

      Like or Dislike: Thumb up 12 Thumb down 6
      • donno on Dec 24, 2020 at 2:44 pm

        its the other way round. just look at the new supra. its almost totally BMW underneath the japanese skin.

        Like or Dislike: Thumb up 20 Thumb down 4
        • GenY AEB on Dec 24, 2020 at 3:20 pm

          Toyota rebadge India Suzuki for Suzuki Market, now Suzuki adopt DNGA, TNGA, eTNGA, Rav4, Corolla.
          Toyota rebadge Mazda2, next Mazda will use TNGA, hybrid and e-TNGA
          Toyota design boxer engine with Subaru, which feature Toyota D4-S direct injection-port injection combo- for Toyota86 Subaru BR-Z.
          Next, Subaru will use Toyota e-TNGA
          Toyota re-engineered a BMW Z4 for Supra, now BMW will adopt Toyota’s tech
          Mazda has been looking at Toyota handling benchmark, after Camry TNGA double wishbone launched, replacing BMW benchmark practice…

          Probably the most humble practice, ethical to help rivals?
          Toyota X TeamWork

          Like or Dislike: Thumb up 16 Thumb down 4
    • seancorr (Member) on Dec 25, 2020 at 7:40 pm

      More than Audi? I beg to differ. Go look at the new A6 price

      Like or Dislike: Thumb up 4 Thumb down 0
  • the driver on Dec 24, 2020 at 2:29 pm

    Depends what your statement is. Are you a person who demands the best and latest tech in a car while adding reliability second to the above. Or you want reliability at the top and refinement of existing technology.
    Lexus has never had a ‘halo’ model showcasing the depths of tech nor innovation, just refined models with reliability its priority. For wealthy owners who can change cars regularly, Lexus is not a brand considering.

    Like or Dislike: Thumb up 12 Thumb down 2
    • Gomorrah on Dec 24, 2020 at 9:21 pm

      Really? Then LFA is what?

      Like or Dislike: Thumb up 5 Thumb down 3
      • the driver on Dec 24, 2020 at 11:21 pm

        No turbo, nothing new, just a large 5l engine that was way overpriced. wasn’t very good handling either compared to the Porsches, Lamborghini, Ferraris of the day. Knew someone would mention that car.

        Like or Dislike: Thumb up 12 Thumb down 9
        • A class above on Dec 26, 2020 at 8:56 am

          Lexus LFA is a finese that always end the Fast and Furious Game, Movie.

          Like or Dislike: Thumb up 2 Thumb down 1
  • Don’t even know why people will pay money for junk.

    Has anyone seen their infosystem? Their horrible excuse of “wear it with pride” pasar malam design is just like being on the receiving end of deep throat; majority chokes and puke on it and a small percentage are nymphos who gets off for the wrong reason.

    Other crappy stuff
    – lousy handling so you can’t safe yourself in an accident with precise manuvering
    – skinny tyres for driving at 20km per hour.
    – lousy engine that doesn’t get you uphill

    Lexus and Toyotas are reliable? I guess when you consider that you are paying alot for 50 year old technology. Driving at 20km will also put less strain on the engine and gearbox.

    If you really have to buy a “reliable” car. Buy a toyota or honda, it’s cheaper and the same. Or you could buy 3 protons so you won’t have a reliability issue.

    Like or Dislike: Thumb up 23 Thumb down 46
    • Thankfully naivity like yours is a dime in a dozen otherwise the effort that Toyota puts in a Lexus would be judged by a world full of 3 year olds.

      When you grow up, you will know why Lexus as a brand exists and sells strongly against its European peers.

      Like or Dislike: Thumb up 26 Thumb down 6
  • IpohMali on Dec 24, 2020 at 2:31 pm

    People who buys grand seiko will understand what is merely a branding or they want something featured with exclusive

    Like or Dislike: Thumb up 9 Thumb down 0
  • Lexus is nearer to Mercedes than BMW where Lexus and Mercedes are striving for comfort and luxury while BMW focus on driving engagement.

    I will take Lexus any day for their attention to detail, craftmanship, comfort and reliability. But one thing that they are really lacking behind is their drivetrain. The NA engines are aging while the 2L turbo is still lack of efficiency. Lexus best bet is going Hybrid all out for all their line-up.

    Like or Dislike: Thumb up 14 Thumb down 3
  • karam singh on Dec 24, 2020 at 2:36 pm

    there is a reason for the name. luxury export to US.

    toyota just wants to sell more cars. and at the same time to show thr world they can do what BMW and Merc can do. and then some.

    we can see the SUV craze today?

    the Harrier or Lexus RX appeared sometime in 97-98. way ahead from volvo XC90 or XC60 or BMw X3 X5 and merc GL series.

    but nice article btw. kudos to the writer.

    Like or Dislike: Thumb up 18 Thumb down 1
  • stick on Dec 24, 2020 at 2:36 pm

    not sure about their qualities but that fugly logo is the biggest turn-off for me

    Like or Dislike: Thumb up 11 Thumb down 22
  • IS expensive Toyota!!!

    Like or Dislike: Thumb up 9 Thumb down 12
  • Jason chew chew on Dec 24, 2020 at 3:25 pm

    Personally I’d go for the new S90 t8 plus or their SUV variant . More bang for the buck.

    Like or Dislike: Thumb up 3 Thumb down 8
  • heybadigol (Member) on Dec 24, 2020 at 4:15 pm

    Firstly, was Danny in an MR2? Of course, not all Lexus models are based on Toyota. The RWD models (IS, GS (rest in peace), LS) are all bespoke to Lexus only (for now). And its these cars that to me, are what makes Lexus. The SUVs are mostly, if not entirely, based on Toyota cars. The RX shares the Camry platform. So in a way, yes you could say the SUVs are expensive Toyotas. But nothing wrong with that, as they are reliable. And those who buy Lexus SUVs (and that is the bulk of Lexus sales) dont really care for exciting handling. They want that luxury feel and customer service, which Lexus is renowned for. For something fun, it’s the RWD models that you should go for.

    Like or Dislike: Thumb up 6 Thumb down 1
    • Sonyman1 on Dec 24, 2020 at 5:27 pm

      Danny Toyota 86 bah ….and GR Supra next.

      Like or Dislike: Thumb up 4 Thumb down 1
    • alldisc on Dec 27, 2020 at 7:23 pm

      incorrect.

      originally Lexus IS was sold in Japan as Toyota Altezza. Lexus GS as Toyota Aristo.
      Lexus LS as Toyota Celsior.

      Lexus RX as Toyota Harrier. Lexus SC as Toyota Soarer.

      Lexus ES as Toyota Camry Scepter

      back then Lexus was not sold in Japan. but tody it is so there is no separate Toyota models using same body.

      Like or Dislike: Thumb up 2 Thumb down 0
  • svherman on Dec 24, 2020 at 5:05 pm

    Kudos on the midship Danny!

    Like or Dislike: Thumb up 0 Thumb down 1
  • Benzy on Dec 24, 2020 at 5:22 pm

    Yes its luxurious, bold design and techy, however the price is unjustified due to the brand royalty. Given our asian culture and heritage, Lexus is still a Toyota to us. Ill choose a Benz everytime especially now the new tech by new S class, again becoming a new market leader.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Wait until you meet the LFA…one of the best supercar ever produced.

    Like or Dislike: Thumb up 7 Thumb down 4
  • Semi-Value (Member) on Dec 24, 2020 at 8:20 pm

    sam loo says good rv

    Like or Dislike: Thumb up 4 Thumb down 1
  • Koay Seng Lee on Dec 25, 2020 at 6:28 am

    Agreed, Lexus is an expensive Toyota.

    Like or Dislike: Thumb up 6 Thumb down 2
  • seancorr (Member) on Dec 25, 2020 at 7:47 pm

    To me a Lexus is still a glorified Toyota. I don’t want to see my Lexus having the same side mirror button as a Vios. Their drivetrains are severely lacking. Maybe that’s why it’s realible because it’s old technology and let’s not discuss about the Dynamic Force engine because it’s nth great to shout about and lastly their infortainment system is so bad that you want to shoot yourself in the foot for buying a Lexus.

    Like or Dislike: Thumb up 3 Thumb down 9
    • Corsea on Dec 26, 2020 at 8:54 am

      That’s a wierd identity you are looking for.

      It’s a Vios that share Lexus parts.
      Lexus IS also curi Lexus LFA dashboard rhino arms for lights, wipers, speedometer control.

      Vice versa, you get the some VW accessories in a Bently.

      Like or Dislike: Thumb up 8 Thumb down 0
  • Current UX owner. TNGA + Lexus Driving Signature + Dynamic Force NA Engine = Class of it’s own.

    Like or Dislike: Thumb up 6 Thumb down 0
 

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