Car TalkIndustry knowledgeWho Makes Lexus Cars? History and Manufacturing Details

Who Makes Lexus Cars? History and Manufacturing Details

Lexus is an iconic luxury brand that has manufacturing factories from Japan to North America. It’s the most-selling premium automobile brand in Japan and is sold in over 70 countries and locations across the world.

Who makes Lexus cars? As a fan of this brand, you might have thought about this. Well, let’s dig into the history and manufacturing of this brand admired by millions.

Who Makes Lexus Cars?

Curious about what car company makes Lexus? It’s none other than the Japanese automaker giant Toyota. Lexus is Toyota’s luxury vehicle division.

Toyota’s chairman Eiji Toyoda set Project F1 in 1983 with a challenge in mind – making the world’s best car. It ended successfully in 1989 with the launch of Lexus.

Lexus LS 400 was the first model to be displayed in Detroit’s North American International Auto Show in January 1989. The rear-wheel-drive model had a 4.0L V8 gasoline engine.

In fact, this model was kind of revolutionary in the luxury sedan category. It impressed both the consumers and the experts with its comfort features, luxury amenities, and high performance.

who makes lexus vehicles
A Lexus LS 400 was the first model displayed in USA. (Photo: Spanish Coches)

From the very beginning, international markets were the target consumer base of this luxury brand. In fact, Toyota did years of market research in California’s Laguna Beach to learn about the buying behavior of cash-rich Americans.

As the brand had targeted the well-off Americans, it’s not surprising that it launched with 81 dealerships in the USA. However, the manufacturing takes place mostly in Japan, with its headquarter in Nagoya.

Toyota has sold millions of Lexus vehicles so far since launching the first model of this brand.

It has been launched around the same time as Infinity and Acura (the luxury divisions of Nissan and Honda, respectively) but enjoyed much more popularity than its Japanese rivals. Lexus has also beat its rivals in terms of total sold units.

The United States has remained the largest market for Lexus models. However, with the intention to expand the customer base, the company has started selling more outside the USA since the 2000s.

What Company Owns Lexus?

You might be wondering, does Toyota own Lexus or not?

It’s not unusual for brands to change ownership or merge with another company. This is not the case with Lexus, though.

Toyota is both its parent company and the owner. However, these two brands don’t share the same operation line. They operate independently with separate headquarters in different cities.

In the beginning, the engineering and building of Lexus vehicles were done in Toyota plants. However, it started its separate operation in the early 2000s. It is the first Japanese premium car brand that starts dealerships in Japan.

Currently, Lexus runs huge manufacturing and selling operations in North America, Europe, Latin America, Southeast Asia, and many other countries in the world.

who builds lexus cars
You may wonder does Toyota own Lexus or not. (Photo: Lexus UK Magazine)

See More: How Sportscars, Supercars and Hypercars Are Different?

FAQs on Lexus Cars

Why was the first Lexus (LS 400) launched in the U.S. before Japan?

Because Lexus didn’t exist as a brand in Japan until 2005.

The LS 400 debuted in the U.S. in 1989, while Japanese buyers received the same car under the Toyota Celsior name.

Are all Lexus cars built in Japan?

Not anymore. While many core models are still made in Japan (Tahara and Kyushu plants), others like the ES and RX are assembled in Canada and the U.S. for North American markets.

What makes the Tahara plant in Japan unique for Lexus production?

The Tahara plant is known for human-robot synergy, ultra-clean assembly lines, and “Takumi” master craftsmen who perform key finishing tasks with surgical precision.

Why did Lexus initially avoid using the Toyota name badge?

To break into the premium market cleanly.

Toyota feared that its reputation as a maker of affordable, reliable cars would dilute Lexus’s luxury image, so Lexus branding was kept separate.

Did Lexus ever build manual transmission cars?

Yes. Though rare, some early models like the IS 300 and SC 300 were offered with manual transmissions to appeal to driving enthusiasts, especially in North America.

Are Lexus engines hand-built?

Not all. But high-performance “F” models (LFA’s V10 or IS F’s V8) were hand-assembled in special facilities and signed by the technician.

What was the first hybrid Lexus and why was it groundbreaking?

The RX 400h (2005) was the world’s first luxury hybrid SUV, blending fuel efficiency with premium features long before it was mainstream.

Conclusion

Who makes Lexus cars? We hope you have got the answer. The brand is revolutionary in many ways, along with being the front runner of hybrid models in various markets. It has survived the test of time without losing popularity or sales.

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Tsukasa Azuma
Tsukasa Azuma
Tsukasa Azuma is the resident car expert at Car From Japan. He owns a car repair shop in downtown Osaka, and his years of hands-on experience shine through in his informative blog posts. Tsukasa provides top-notch car maintenance tips and keeps readers up-to-date on the latest trends in the auto industry, offering a unique and insightful perspective on everything car-related. His blog has become a go-to resource for anyone wanting to keep their car in top shape.
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