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Sunday, October 10, 2021

Toyota’s Lexus Beats German Rivals in the US Market

As per Bloomberg sources, the U.S. luxury market saw Toyota Motors’ premium brand Lexus outselling its German rivals in the QTR 3. They have signaled that the global chip shortage was better handled than their competitors.

Led by its NX SUVs and RX models, the third quarter saw Toyota clock 81,093 sales that accounted for more than 50 percent of its total deliveries during the period. However, BMW is leading among the top 4 Automakers cumulatively in 2021 till the end of Qtr. 3. BMW depends on its plant in Spartanburg, South Carolina, and is popular for its crossover models like X5 and X3. They delivered 75,619 vehicles for Qtr. 3 as overall auto sales dropped due to Covid-19 outbreaks in Malaysia that affected semiconductor production. 

Efforts were on to improve the supply chain, the setback in semiconductor availability, however, worsened the scenario. Automakers usually exhaust stockpiles, and other industries cannot spare any surplus to them.  

According to Michelle Krebs, an analyst with AutoTrader, “Even though Lexus had fewer cars with its dealers, it managed to sell more than BMW and Mercedes-Benz in the third quarter.”

Krebs said,” We have seen how Toyota managed throughout the shortage with its efficient distribution system. They have managed to supply the vehicles to the dealer quickly despite having the lowest inventory in the industry.

The smaller dealer network of Toyota helps, unlike the larger mass-based car brands that have to spread thin a limited inventory over a bigger number of retailers.

While BMW sales grew at 8.7% in the July-September Qtr, compared to the previous year same period, Mercedes fell by 21 %, the biggest hit it took since 2020 QTR 3. Toyota’s Lexus was up by 7.7% in comparison. 

The president of Mercedes U. operations, Dimitris Psillakis, said in a statement” The shortage of Semiconductors created a challenge in the third quarter despite the brand having a strong demand for models in its line-up.

Mercedes sales were led by its models GLE SUV and C-Class sedan. It is now planning to introduce the EQS sedan, its flagship electric vehicle, to the U.S. market this fall. 

The sales of Audi-AG fell by 14% on an annualized basis to 41,019, impacted by chip shortages. The Q3 crossover and Q5 SUV were the biggest selling models, whereas the electric model e-Tron sales plunged by 84%.

Overall, the sales of all the four luxury brands have seen growth compared to 2020 to date.

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Josie Patra
Josie Patra is a veteran writer with 21 years of experience. She comes with multiple degrees in literature, computer applications, multimedia design, and management. She delves into a plethora of niches and offers expert guidance on finances, stock market, budgeting, marketing strategies, and such other domains. Josie has also authored books on management, productivity, and digital marketing strategies.

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