Lexus Lost Tons Of Cash By Leaving Russia CarBuzz News Features New Cars Used Cars Sell My Car Shopping Tools Car Reviews Car Finder Compare Cars Best Cars Car Dealerships Used Car Reviews Car Advice Home News Lexus Lost Tons Of Cash By Leaving Russia

Lexus Lost Tons Of Cash By Leaving Russia

Jun. 04, 2022 10:31 AM ET by Chase Bierenkoven Industry News / 30 Comments The brand now has to figure out where to get that money back. Russia's invasion of Ukraine has had serious ramifications for the automotive industry. The conflict has tightened already strained supply chains across the industry, and numerous automakers have pulled out of Russia as a result of economic sanctions, as well as in protest of the nation's actions towards Ukraine. Lexus is one of those. After Russia invaded in February, Toyota and Lexus pulled out of the nation. The Russian market was huge for Lexus. It made up a significant chunk of the Japanese brand's European sales. In 2021, Lexus sold 72,441 units in Europe, 19,638 of which went into Russia. Another 1,881 of those were sold in Ukraine. All said and done, that accounts for roughly 30% of Lexus' European market sales, which the brand is hoping to bolster with the release of new models like the Lexus RZ. That is set to debut in January next year for Europe. Lexus Lexus Lexus Whether that works remains to be seen, and for now, Lexus will no doubt be feeling the effects of losing its Russian market. In this year's first quarter, which ended in April, Lexus sold only 1,738 cars in Russia. Based on the brand's first-quarter statements, that adds up to a decline somewhere in the neighborhood of 76%. Luckily, Lexus has other footholds in Europe, like the UK. There, Lexus managed to sell 13,840 units. While not as large a segment as Russia, it is a solid consolation prize for a brand now down a huge chunk of change due to Russian warmongering. Interestingly, Lexus is a well-liked brand in Eastern Europe. The brand's third-largest European market last year was Poland, with 6,081 units sold there. For now, Lexus' production capacity has not been significantly hampered by its departure from the Russian market. Lexus Lexus Lexus Lexus It remains unclear where Lexus will pick up the loss it took in Russia. While Lexus is a popular choice in America, it would need a significant bump in sales to compensate for the Russian loss. Perhaps the all-new RX that debuted this week or the recently unveiled RZ, the brand's first electric model in the US, can accomplish that. Offering a diverse electric portfolio is fast becoming a successful recipe for brands. Porsche, for instance, sold more Taycan EVs than 911s in 2021. While obviously not a storied sports car maker like Porsche, the lesson is still there for Lexus. In order to recoup the Russian losses it took, the brand has to electrify, and quickly. Historically, Japanese automakers have failed to do so, but maybe Lexus can change that. Lexus Lexus Lexus Lexus

Join The Discussion

Show Comments (30)

Gallery

13 Photos Tags: #Lexus News #Industry News #JDM #Luxury

Related Cars

Lexus RX Chase Bierenkoven Associate Editor Shortly before applying to law school, Chase decided to take a chance on pursuing his dream job: playing with cars and getting paid for it. Law school was just a means to an end, after all. His first writing job was freelance and barely paid his grocery bill. It quickly turned into a full-time position, eventually leading Chase to join CarBuzz in 2022. Chase now tests cars, and sits comfortably at the news desk when he's not in the driver's seat. In his spare time, Chase can be heard trying to play guitar, or out enjoying Colorado's natural splendor in his BMW M3. Contact Chase @bierenkoven @cbier823 LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top