Lexus is working by way of an order backlog in Europe after Toyota’s premium model was hit notably onerous by the chip scarcity, forcing it to pause gross sales of some variations of its newly launched NX midsize SUV.
“There’s no denying 2022 was a really robust yr for Lexus,” Matt Harrison, president and CEO of Toyota Motor Europe, mentioned on the automaker’s Kenshiki media occasion in Brussels on the finish of November.
Lexus gross sales in Europe fell 28 % to 27,247 within the first 9 months of 2022, in line with figures from market researcher Dataforce. The model’s best-selling UX compact SUV had the largest drop, down 36 % to 10,053.
Lexus’ European gross sales have been additionally hit by the Toyota’s exit from the Russian market, which the corporate consists of in its European reporting. “25 % of Lexus quantity was in Russia,” Harrison mentioned. “And never small fashions, both. Largely RX [large SUV], NX and even LX [luxury sedan]. The revenue impression is extra important than the gross sales impression.”
Lexus had been hoping for a gross sales enhance in Europe from its newly launched NX mannequin, which added a plug-in hybrid to the model’s vary for the primary time to provide it entry to tax incentives supplied to fleet clients.
Japanese manufacturing of the NX, nevertheless, has been slowed by the chip scarcity, leaving the model with a backlog of orders.
“Now we have skilled extreme manufacturing cuts on key fashions together with NX, a mannequin central to our progress aspirations this yr,” Harrison mentioned. “We’re assured that when provide limitations ease, our Lexus progress momentum will proceed.”
The chip scarcity first started to have an effect on international automotive manufacturing towards the top of 2020 as coronavirus lockdowns eased. Volkswagen’s flagship Wolfsburg plant has been among the many hardest-hit websites just lately.
Sam Fiorani of AutoForecast Options, who tracks manufacturing losses, mentioned in mid-November that provides might ease by the center of subsequent yr.
Within the UK, one of many largest European markets for Lexus, clients are being warned on the model’s shopper web site that 2023 manufacturing of the full-hybrid NX 350h is offered out and that order books are closed. Prospects can nonetheless order the plug-in hybrid. Wait occasions on the NX are actually 12 months, Harrison instructed Automotive Information Europe.
Toyota has been unable to shift chips from cheaper fashions to unblock manufacturing, as has occurred with different automotive teams with premium manufacturers.
“NX has lot of elements which are distinctive to the automobile,” mentioned Pascal Ruch, head of worth chain and enterprise planning for Lexus Europe. “The flexibility to swap between automobiles is possibly not as huge as different producers.”
Lexus is hoping for a greater yr in Europe for 2023, with the chip disaster anticipated to ease and the launch of recent fashions such because the overhauled RX, which provides a plug-in hybrid model, and the brand new RZ midsize electrical SUV.
“We’re way more assured in 2023, particularly as we see demand has by no means been as robust,” Ruch mentioned.
Nonetheless, the model declined to provide a gross sales prediction for the yr. “Our main focus level is to get the provision sorted out. That is a lot larger than our gross sales numbers,” Ruch added.
Lexus mentioned in 2021 that it needed to extend gross sales in its wider European area to 130,000, 50 % greater than its 2019 gross sales figures.
Harrison hinted that the model is planning to launch a mannequin that’s extra tailor-made to European preferences to extend its enchantment within the area.
“There might be some very thrilling information coming from Lexus subsequent yr with a really particular give attention to Europe,” he mentioned on the Brussels occasion, with out giving extra particulars.