Lexus Dominates US Luxury Car Market
Lexus has achieved a remarkable streak of success in the US luxury car market, outperforming its non-Tesla rivals. According to S&P Global Mobility’s registration data, Lexus has topped all non-Tesla luxury brands in retail registrations for four consecutive quarters, from Q4 2023 to Q3 2024. This prolonged period of success is notable, marking the first time in six years that Lexus has maintained such a position.
SUVs Drive Lexus’ Success
Two key factors contribute to Lexus’ recent triumph. Firstly, the brand excels in the upper midsize luxury utility segment, which accounts for 22% of retail luxury registrations. Lexus commands over half of this category, thanks largely to the enduring popularity of the RX model, which has been a flagship since its introduction in 1990. In the period from January 2014 to November 2024, the RX was not only the most popular non-Tesla utility but also achieved nearly double the retail volume of the next best-selling utility, the Acura MDX.
Lexus’ 51% share of the upper midsize luxury utility segment significantly outpaces its competitors, with BMW at 19.4% and Mercedes-Benz at 16.8%. Secondly, Lexus is outperforming its main rivals in the growing hybrid market within the midsize luxury utility segment. Nationally, hybrids comprised 13% of all new US retail registrations in the first 11 months of 2024, up from 10.3% the previous year. Lexus has capitalized on this trend by offering hybrid versions of its popular models, particularly the RX, where 20% of registrations are hybrids.
Strong Performance in Compact Luxury Utility Segment
In the compact luxury utility segment, the largest luxury category, Lexus maintains a strong presence with a 24.7% share, surpassing BMW but falling behind Mercedes-Benz. Although the Lexus NX captured only 8.3% of new vehicle registrations through November 2024, it led among non-Tesla models in this segment. Notably, 45% of NX registrations were hybrids, highlighting Lexus’ strength in hybrid technology. In contrast, BMW’s X3 is not available with a hybrid option, while Mercedes-Benz’s GLC offers a hybrid version that accounts for just 3.2% of its retail registrations.
A review of the 15 most popular luxury hybrids through the first 11 months of 2024 underscores Lexus’ dominance in the hybrid market. Six Lexus models feature on this list, compared to three Mercedes-Benz and just one BMW model. Together, the six Lexus models accounted for more than 40% of luxury hybrids registered in November 2024, a testament to the brand’s strong hybrid offerings.
Lexus’ success in the US luxury car market can be attributed to its strategic focus on SUVs and hybrid vehicles, aligning its product portfolio with current market trends. By offering appealing products in the largest luxury segments with the option of hybrid propulsion, Lexus has positioned itself at the top among non-Tesla luxury brands.
