1980s: The F1 project The Lexus brand was created around the same time as Japanese rivals
Nissan and
Honda developed their
Infiniti and
Acura premium brands. The Japanese government imposed
voluntary export restraints for the U.S. market, so it was more profitable for Japanese automakers to export more expensive cars to the U.S. In 1983, Toyota chairman
Eiji Toyoda issued a challenge to build the world's best car. The project, code-named F1 ("Flagship One") developed the
Lexus LS 400 to expand Toyota's product line in the premium segment. The F1 project followed the
Toyota Supra sports car and the premium
Toyota Mark II models. Both the Supra and Mark II were
rear-wheel drive cars with a powerful
7M-GE or
7M-GTE inline-six engine. The largest sedan Toyota built at the time was the limited-production, 1960s-vintage
Toyota Century, a domestic, hand-built limousine, and V8-powered model, The Century was conservatively styled for the Japanese market and along with the Crown not slated for export after a restyle in 1982. In 1986,
Honda launched its
Acura marque in the U.S., influencing Toyota's plans for a luxury division. The initial Acura model was an export version of the
Honda Legend, called the
Acura Legend, itself launched in Japan in 1985 as a rival to the
Toyota Crown,
Nissan Cedric/
Gloria and
Mazda Luce. In 1987,
Nissan unveiled its plans for a premium brand,
Infiniti, and revised its
Nissan President sedan in standard wheelbase form for export as the
Infiniti Q45, which it launched in 1990.
Mazda began selling the Luce as the
Mazda 929 in North America in 1988 and later began plans to develop an upscale marque to be called
Amati, but its plans did not come to fruition. During that time, several F1 designers rented a home in
Laguna Beach, California, to observe the lifestyles and tastes of
American upper class consumers. Toyota's market research concluded that a separate
brand and sales channel were needed to present its new sedan, and plans were made to develop a new network of dealerships in the U.S. market.
Brand development In 1986, Toyota's longtime advertising agency
Saatchi & Saatchi formed a specialized unit,
Team One, to handle marketing for the new brand. While Alexis quickly became the front runner, concerns were raised that the name applied to people more than cars (being associated with the
Alexis Carrington character on the popular 1980s prime time drama
Dynasty). sedan was the first Lexus model.|alt=Front quarter view of a sedan parked on a street. Theories of the etymology of the Lexus name have suggested it is the combination of the words "luxury" and "elegance", and that it is an acronym for "luxury exports to the U.S." The injunction threatened to delay the division's launch and marketing efforts. Three firms were involved in the final phase of logo development: Saatchi & Saatchi, Molly Designs and Hunter/Korobkin, Inc. The finished logo was a combination of two firms' final designs: the Lexus logo typeface came from Saatchi & Saatchi and the "L" was Hunter/Korobkin, Inc.'s design. According to Toyota, the automaker made some refinements so the logo would be easier to manufacture, rendering it using a mathematical formula.
Launch The F1 project was completed in 1989, involving 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, approximately 450 prototypes and more than $1 billion in costs. The resulting car, the Lexus LS 400, had a design that shared no major elements with previous Toyota vehicles, with a new 4.0 L
V8 gasoline engine and
rear-wheel drive. The car debuted in January 1989 at the
North American International Auto Show in Detroit The LS 400 was sold along with the smaller
ES 250, a
rebadged version of the Japanese market
Toyota Camry Prominent/Toyota Vista. was the third Lexus model and first coupe.|alt=Front quarter view of a coupe. The LS 400 was praised for its quietness, well-appointed and
ergonomic interior, engine performance, build
quality,
aerodynamics,
fuel economy and value. However, it was criticized by some automobile columnists for derivative styling and a
suspension regarded as too compromising of handling for ride comfort. In some markets it was priced against mid-size, six-cylinder
Mercedes-Benz and
BMW models. It was rated by
Car and Driver magazine as better than the higher-priced Mercedes-Benz
420 SEL and BMW
735i in terms of ride, handling and performance. The LS 400 also won
motoring awards from automotive publications including
Automobile Magazine and
Wheels Magazine. Lexus quickly established customer loyalty and its debut was generally regarded as a shock to existing luxury marques. BMW's and Mercedes-Benz's U.S. sales figures dropped 29 percent and 19 percent, respectively, with BMW executives accusing Lexus of
dumping in that market, while 35 percent of Lexus buyers traded in a Lincoln or Cadillac. By the end of 1989, a total of 16,392 LS 400 and ES 250 sedans were sold in the four months following the U.S. launch. Although sales had begun at a slower pace than expected, the final tally matched the division's target of 16,000 units for that year. Following initial models, plans called for the addition of a sports coupe along with a redesigned ES sedan. the majority being the LS model. In 1991, Lexus launched its first sports coupe, the
SC 400, which shared the LS 400s V8 engine and rear-wheel drive design. At the conclusion of 1991, Lexus had become the top-selling premium car import in the U.S., with sales reaching 71,206 vehicles. The marque also began increasing U.S. model prices past those of comparable American premium makes, but still below high-end European models. In 1993, Lexus launched the mid-size
GS 300 sports sedan, based on the Toyota Aristo using the
Toyota "S" platform from the
Toyota Crown, which had sold for two years prior in Japan. That same year, Lexus became one of the first marques to debut a
certified pre-owned program, with the aim of improving trade-in model values. The marque introduced the second generation LS 400 in 1994. In May 1995, sales were threatened by the U.S. government's proposal of 100 percent
tariffs on upscale Japanese cars in response to the widening U.S.-Japan
trade deficit. SUVs were exempt from the proposed sanctions. Normal sales operations resumed by late 1995 when the Japanese auto manufacturers collectively agreed to greater American investments and the tariffs were not enacted. followed by the third generation ES 300 sedan, and the second generation GS 300 and GS 400 sedans in 1997. The marque's plans for developing an SUV model had accelerated during the U.S.-Japan tariff discussions of 1995. The same year, Lexus made its debut in South America's most populous country when it launched sales in Brazil. In 1999, the
IS was introduced, an entry-level sport sedan. Lexus also recorded its 1 millionth vehicle sold in the U.S. market, The GX 470 mid-size SUV debuted in 2002, followed by the second generation RX 330 in 2003. The following year, Lexus recorded its 2 millionth U.S. vehicle sale, and the first luxury-branded production hybrid SUV, the
RX 400h. This vehicle used Toyota's
Hybrid Synergy Drive system that combined gasoline and electric motors. In 2005, Lexus completed an organizational separation from parent company Toyota, with dedicated design, engineering, training, and manufacturing centers working exclusively for the division. This effort coincided with Lexus' launch in its home market of Japan and an expanded global launch of the brand in markets such as China. Executives aimed to increase Lexus sales outside of its largest market in the U.S. To accompany this expansion, next generation Lexus vehicles were redesigned as "global models" for international release. In the European market, where Lexus had long faced struggling sales owing to low brand recognition, few dedicated dealerships, and 1990s
import quotas, the marque announced plans to introduce hybrid and diesel powertrains, increase the number of Lexus dealerships, and expand operations in emerging markets such as Russia. , second generation with F marque variant in 2007|alt=Front quarter view of a sedan. Lexus' arrival in the Japanese market in July 2005 marked the first introduction of a Japanese premium car marque in the domestic market. New generation LS, IS, ES, GS, and RX models subsequently became available in Japan along with the SC 430, ending domestic sales of Toyota-branded models under the Celsior, Altezza, Windom, Aristo, Harrier, and Soarer nameplates, respectively. The Altezza and Aristo were previously exclusive to Japanese Toyota retail sales channels called
Toyota Vista Store, the Windom was exclusive to Toyota Corolla Store, the Celsior and Harrier were exclusive to Toyopet Store, and the Soarer was previously available at both Toyota Store and Toyopet Store locations. affected by the contraction of the domestic auto market and price increases, Through the mid-2000s, Lexus experienced sales successes in South Korea and Taiwan, becoming the top-selling import make in both markets in 2005; the marque also sold well in the Middle East, where it ranked first or second among rivals in multiple countries, Division executives in 2006 announced an expansion goal from 68 countries to 76 worldwide by 2010. By the end of the decade, this expansion resulted in official launches in Malaysia and South Africa in 2006, Indonesia in 2007, Chile in 2008, and the Philippines in 2009.
Hybrids and F models In 2006, Lexus began sales of the
GS 450h, a
V6 hybrid performance sedan, and launched the fourth generation
LS line, comprising both standard- and long-
wheelbase V8 (LS 460 and LS 460 L) and hybrid (LS 600h and LS 600h L) versions. The fifth generation ES 350 also debuted in the same year. The LS 600h L subsequently went on sale as the most expensive sedan ever produced in Japan. By the end of 2006, Lexus' annual sales had reached 475,000 vehicles worldwide. accompanied by a concept car, the
LF-A. , first rear-wheel-drive hybrid|alt=Front quarter view of a sedan. In October 2007, Lexus entered the
Specialty Equipment Market Association show in the U.S. for the first time with the IS F, and announced its
F-Sport performance trim level and factory-sanctioned accessory line. Increased emphasis on sporty models was an effort to target rivals from Mercedes-Benz's
AMG and BMW's
M divisions. Models such as the SC 400 and GS 400 had received favorable reactions from sport luxury buyers, most Lexus models had been characterized as favoring comfort over sporty road feel and handling, compared with European rivals. By the end of 2007, Lexus annual worldwide sales had surpassed 500,000 vehicles, and the marque ranked as the top-selling premium import in China for the first time. The largest sales markets in order of size for 2007 were the U.S., Japan, the UK, China, Canada, and Russia. In 2008, amidst the
late-2000s recession and a weakened world car market, global sales fell 16 percent to 435,000, with declines in markets such as the U.S. and Europe where deliveries fell by 21 percent and 27.5 percent, respectively. In 2009, the marque launched the
HS 250h, a dedicated hybrid sedan for North America and Japan, the
RX 450h, the second generation hybrid SUV replacing the earlier RX 400h, and later that year debuted the production
LFA exotic coupe. In late 2009, citing higher sales of hybrid models over their petrol counterparts, Lexus announced plans to become a hybrid-only marque in Europe. By the end of the decade, Lexus ranked as the fourth-largest premium car make in the world by volume,
2010s |alt=Front quarter view of a coupe. In 2010, Lexus underwent a gradual sales recovery in North America and Asia as the marque focused on adding hybrids and new model derivatives. Sales in the U.S. held steady despite the
2009–2010 Toyota vehicle recalls, several of which included Lexus models. while parent company Toyota bore the brunt of negative publicity amid investigations over its series of product recalls and problem rates per-vehicle. The redesigned
GX 460 was also voluntarily recalled in April 2010 for a
software update, one week after
Consumer Reports issued a recommendation not to buy the SUV, citing a possible rollover risk following the slow
stability control response to a high-speed emergency turn. Although the publication knew of no reported incidents, the GX 460 received updated stability control software. Sales of lower-displacement regional models were also expanded, beginning with the ES 240 in China followed by the RX 270; Japan, Russia, and Taiwan were among markets which received model variants intended for reduced emissions or import taxes. In March 2011, the
Tōhoku earthquake and tsunami caused severe disruption to Lexus' Japan-based production lines, hindering the marque's near-term sales prospects. Lexus' U.S. executives stated that due to vehicle shortages amidst close competition from BMW, Mercedes-Benz, and
Audi, the marque would not remain the country's top-selling premium car brand. along with sales increases of 40 percent and 27 percent in Europe and Japan respectively, for a global sales total of 410,000 units. While 45 percent of Lexus sales in the U.S. in 2011 relied upon the RX luxury crossover SUV, rival Mercedes-Benz's best-selling offering was the E-Class mid-luxury sedan, which commands considerably higher prices. Subsequently, Toyota chairman
Akio Toyoda vowed to restore passion to the marque and further increase its organizational independence, admitting that "...back then we did not regard Lexus as a brand, but as a distribution channel". As a result of Toyoda's organizational changes, Lexus senior managers report directly to the chairman for the first time in the marque's history. In April 2012, the sixth generation ES line, including ES 350 and ES 300h variants, debuted at the
New York International Auto Show. ’ production of eleven years made it the longest running single-generation Lexus. In April 2014, Lexus unveiled the five-seater NX crossover. The vehicle features a very first for a Lexus vehicle: a turbocharger. Its nomenclature is denoted as the 200t. In August 2014, Toyota announced it would be cutting its Lexus spare parts prices in China by up to 35 percent. The company admitted the move was in response to a probe foreshadowed earlier in the month by China's
National Development and Reform Commission of Lexus spare parts policies, as part of an industry-wide investigation into what the Chinese regulator considers exorbitantly high prices being charged by automakers for spare parts and after-sales servicing. In March 2016, Lexus announced that it will be producing a new flagship vehicle: the two-door LC 500. The vehicle will be produced for late 2017 in a V8 version putting out 467 horsepower. The LC 500h, a V6 hybrid variant, could potentially become available in late 2017 or early 2018. In April 2019, Lexus announced that a rebadged
limousine version of the third-generation
Toyota Alphard would be sold as the
Lexus LM. It was also announced that Lexus would finally enter the market in Mexico in 2021 with some of the vehicles in their lineup. In October 2019, Lexus announced that it will be launching the brand's first all-battery
electric vehicle in 2020, which is the
UX 300e. In June 2023, Lexus introduced its first vehicle in the B-segment, the
LBX, which went on sale in Europe, Japan, Australia and Southeast Asia.
2020s As with many other automakers, Lexus has capitalized on changes in the car market by shifting production towards focusing more on SUVs and crossovers than on other vehicle body styles. This transition occurred as early as 2020. As of 2026, out of a total
Lexus production lineup of 13 models, 9 of its vehicles fall into the broader crossover/SUV category. These are, from smallest to largest body size, the
Lexus LBX,
Lexus UX,
Lexus NX,
Lexus RZ,
Lexus RX,
Lexus TX,
Lexus GX, and
Lexus LX. == Corporate affairs ==