Toyota-Lexus may overtake Volkswagen, Audi to become Korea’s third-largest car importer


Lexus, the premium brand of Toyota Motor, has launched all-out efforts to regain its once-high share in Korea’s import automobile market.

Though Lexus was vying for the No. 1 spot in the import car industry with BMW seven or eight years ago, it yielded its position to other competitors in the wake of the record recall incident in the U.S.

The Japanese brand recently slashed the price of the New GS350 sedan by about 11 million won ($9,700). The car’s prices range between 65.8 million and 75.8 million won, compared to last year.

Its prices are cheaper than those for the same GS350 model that was unveiled in the U.S. earlier this year.

Its drastic cut in consumer prices is aimed at battling best-selling models like BMW 520d, Mercedes-Benz E300 and Audi A6, according to Lexus dealers.

“Toyota Motor’s recent marketing and sales in Korea is quite aggressive. Aside from the Lexus sales, it is closely competing with Hyundai Motor’s Grandeur by lowering prices of the New Camry,” a local auto industry executive said.

He said the automotive industry is closely monitoring the steps of Toyota and Lexus since Toyota Motor chief executive Akio Toyoda visited Seoul last year.

Toyoda has vowed to become the champion of sales among foreign automakers in Korea by 2014, promising tough competition with German players.

“Though we may not able to restore our brand image all at once, we will make efforts to top the list of Korea’s import car market within three years,” he said last year.

He expressed determination to overcome the carmaker’s image, undermined by the recall incident, and normalize its production capacity, hit by a magnitude 9.0 earthquake and tsunami in Japan last year, as soon as possible.

Lexus slid to eighth in 2010 sales ranking for imported vehicles after coming fifth in 2009, while German companies such as BMW, Mercedes-Benz, Volkswagen and Audi made up the top four.

Among import brands, Toyota ranked fifth with sales of 5,020 units and Lexus, eighth with 4,111 units in 2011. Their combined sales of 9,131 units lagged behind Audi, which grabbed No. 4 with sales of 10,345 units.

But their combined sales surpassed Audi in March 2012. Toyota-Lexus and Audi ranked fourth (1,258 units in sales) and fifth (1,246 units), respectively.

In March, BMW sold 2,560 units, followed by Mercedes-Benz with 1,746 units and Volkswagen with 1,308 units.

Some raised the possibility that Toyota-Lexus would hold third place in yearly sales in 2012 by overtaking Volkswagen and Audi.

Concerning the sluggish sales of Lexus ― apart from the recall incident ― over the past few years, an import vehicle dealer highlighted its strategic failure compared to German players.

“Volkswagen and Audi have attracted various-aged Korean motorists by launching fresh models, Lexus only sought to secure its market share with traditional models,” he said.

He said it seems that Lexus cars are attracting mostly middle-aged women while the German players target a variety of consumers, including young motorists in their 20s and 30s.

Further, the Japanese company lost some of its credibility through dishonest promotions. It had misinformed consumers about engine power.

Though Lexus said the horsepower of the ES and LS models was 228 and 293, the engines of the models actually had 225 and 283 horsepower.

Other Japanese automakers, including Mitsubishi Motors and Nissan, have been revitalizing their marketing and sales in Korea as well.

Last month, Mitsubishi resumed its vehicle sales in Korea by unveiling two models.

The automaker reentered the local market after a hiatus of about a year by signing an exclusive dealership contract with CXC Motors. Mitsubishi and CXC unveiled the compact crossover RVR and pick-up truck L200.

Nissan is engaging in actively marketing its Infiniti series and the Cube, a characteristic box-like model.

The second-largest automaker in Japan has set the goal of making the Infiniti series become one of the top three import brands in the premium luxury segment.

A Nissan Korea spokeswoman said more and more Korean consumers have been attracted to the Infiniti sedan’s powerful engine.

“Infiniti is quite in contrast to other Japanese cars including Lexus, known as the most silent vehicles,” she said. “Now many consumers want to purchase Japanese cars that give a fun driving experience.”

By Kim Yon-se (kys@heraldcorp.com)