Toyota’s luxury brand Lexus sells very well in the United States, but back in Japan the situation is utterly reversed. The locals there prefer foreign brands (namely German) to Lexus, apparently because the foreign cars provide more individuality.

While Lexus has been around for almost 19 years in the United States, the brand only hit the Japanese shores some three years ago. In a market dominated by German brands such as Audi, BMW, and Mercedes-Benz, Lexus has been struggling to sustain its projected sales figures. In fact, Lexus merely sold 34,800 cars last year.

The problem actually started right from the initial launch in 2005. Lexus had only three models to name of; the GS sports sedan, the SC convertible, and the entry-level IS sedan. The same three were previously sold in Japan under the Toyota nameplate, and were 20% cheaper. Furthermore, reports claim that Toyota’s earlier marketing campaign for Lexus somehow failed and unexpectedly raised the sales of the German brands instead. The stronghold obsession in the German brands rarely makes space for customers to switch to Lexus, and oddly enough, some even go to the extent of importing left-hand-driven German cars to feel its originality (Japan’s norm is right-hand driving).

In recent times, Toyota has spent much on commercializing the Lexus brand, which according to them is increasingly effective. The significance of the brand is growing among the locals, with Lexus outselling its German rivals in some of the important segments.
Source - Business Week

 

Kind of like how many Americans prefer foreign brands over Ford, Chevy, Dodge etc.

 

I would take any foreign car over a Lexus, I think they feel abit cheap, something like an S-class, 7-series or A8 which I like are terrific by all means but have more prestige in my eyes.

 

On the higher end, i would agree that I would much have a big 7 or S class over the larger 90-100k lexus.

However, on the entry level sedan, I much prefer the lexus IS over the C class and base 3 series. IMO the lexus on the lower end feels much more luxurious than the C, also much less plastic and I much prefer the lexus interior

 

Lexus caters to a different market. The S class or 7 series *might* have more prestige but there quality is lacking, dealer service is inferior and resale is pathetic when compared to a Lexus. There is an innate bias againts Japanese cars in the automotive world. You don't see it as much in the entry level cars but you defintely see it in the sports car/luxury car world.

The problem with Toyota selling Lexus in Japan is that the same cars were sold as a Toyota. GM has tried to do that in USA and failed miserably.