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History of Toyota

Launch of Lexus: Toyota’s Foray into Luxury Markets

© SynergyStar

History of Toyota

Launch of Lexus: Toyota’s Foray into Luxury Markets

1983 Aug 1 - 1989
Japan
Launch of Lexus: Toyota’s Foray into Luxury Markets
The Lexus LS 400 went on sale in May 1989 and was seen as being largely responsible for the successful launch of Lexus. © SynergyStar

By the late 1980s, Toyota sought to compete in the global luxury car market, a space dominated by brands like Mercedes-Benz, BMW, and Jaguar. While Toyota's flagship models, the Crown and Century, were well-regarded in Japan, they lacked the international appeal necessary to challenge established luxury automakers. To address this, Toyota began secretly developing a new luxury brand in August 1983, investing over $1 billion in the project.


The result was Lexus, a division dedicated to marketing and servicing luxury vehicles in international markets. The brand's flagship vehicle, the LS 400, debuted in 1989. Designed as a full-size luxury sedan, the LS 400 combined cutting-edge technology, refined styling, and a competitive price point, appealing directly to global consumers.


The LS 400’s strong sales were instrumental in the successful launch of the Lexus marque, establishing Toyota as a formidable player in the luxury automotive segment and paving the way for Lexus to become one of the most respected premium car brands worldwide.

Page Last Updated: 11/14/2024

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