Hybrid variants to dominate ES sales

Lexus has reaffirmed its commitment to hybrids with moves to mainstream the petrol-electric drive technology in parts of its model range, but conventional petrol variants maintain a commanding lead in the Japanese luxury marque’s total global sales.

While hybrids make up close to 90 per cent of Lexus sales in carbon-conscious Europe (a relatively modest 45,610 in 2012), they only account for 26 per cent of the brand’s total sales worldwide.

Now the company has begun repositioning its hybrid line-up in the hope of boosting mainstream acceptance.
The recently launched third-generation IS saw the company pull the hybrid variant down a notch from the top-shelf position it’s established in the RX SUV and the GS and LS sedan ranges. The IS 300h is sandwiched between the two petrol models – the base IS 250 and the upscale IS 350.

The upcoming ES sedan takes this a step further, shifting the hybrid ES 300h down to the entry level.

Early 2014 will see Lexus launch a cheaper hybrid version of the GS large sedan, the GS 300h, giving customers the chance to buy a luxury hybrid in without having to reach up to the high-end GS 450h.

However, it’s unlikely to follow in the footsteps of the hybrid ES as a new price leader. That will be left to the current entry-level GS 250, with the new hybrid slotting in between it and the larger GS 350. The larger GS 450h will remain in top spot.

At a media preview of the ES this week, Lexus Australia chief Sean Hanley said the decision to lead ES pricing with a hybrid variant reflects where the company’s future priorities lie.

“Hybrids already account for about 30 per cent of our current model mix. But over the coming years I believe we’ll see that come closer to a 50/50 split,” he said.

Hanley said current projections are for the hybrid to account for up to 60 per cent of ES sales, while about 70 per cent of ES sales are expected to be base Luxury variants, which enjoy a $9000 price advantage over the specced-up Sports Luxury.

Much of this is anomalous for a new model pitched into the luxury segment, reflecting the unique niche the company wants to carve for the vehicle.

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