China's own brand automakers are on the rise, with a market share of 51% in the first three quarters of this year, up 4% year-on-year9%。At the same time, joint ventures and traditional foreign brands have not performed as well as they should. Among them, sales of Japanese cars and its luxury brand Lexus have been declining, but they have recently rebounded. However, Lexus still faces a number of challenges, not least the significant price reduction of its flagship model, the ES, which has raised concerns about the brand's prospects. In the first three quarters of this year, the market share of China's domestic brand automakers reached 51%, a year-on-year increase of 49%, reflecting the strong rise of China's own brands. In this rising wave, joint ventures and traditional foreign brands are facing an increasingly difficult situation.
Sales of Japanese cars and its luxury brand Lexus have continued to decline, but sales of Lexus have recently begun to pick up, despite mixed reviews in the market. Whether this situation can be sustained and whether Lexus can regain its glory is still full of unknowns. In the first three quarters of this year, the sales of Japanese brands in China fell by 15% year-on-year4%, and the market share dropped from 20% to 172%, highlighting the plight of Japanese automakers in the Chinese market, and also highlighting the rise of China's own brand automakers. Still, the recent resurgence in Lexus sales seems to have brought some unexpected surprises. But whether this phenomenon will continue is still uncertain, and the market volatility is unpredictable. Although Lexus has seen some recovery in sales, it still faces a number of challenges.
In October 2023, Lexus sales reached 1660,000 units, and 0590,000 vehicles, showing some signs of recovery. However, this is only a week's worth of results, and the market is always volatile. For an all-imported brand, such a price reduction move is undoubtedly a bit embarrassing. While there is a glimmer of hope in the short-term rebound in sales, the significant price reduction of its main model, the ES, is thought-provoking. Overall, Lexus sales have recovered, but they are still facing many difficulties. Past success is not indicative of future success, and the joy of a rebound in sales may be short-lived. Lexus needs to re-examine the challenges it faces, and make profound reflections and adjustments in terms of product strength and brand positioning in order to remain invincible in the fierce market competition.
For Lexus, the problem is not only a short-term sales recovery, but more importantly, how to find a long-term sustainable development path. Therefore, in the face of the current situation, what adjustments and changes does Lexus need to make in order to usher in a real recovery?