Why is Lexus so expensive?
1 Answers
There are several reasons why Lexus models are sold at a premium price: 1. Currently, the most popular Lexus model in China is the ES. Positioned as a luxury mid-to-large-size sedan, it competes with models like the Mercedes-Benz E-Class, BMW 5 Series, Audi A6L, and Volvo S90. The Lexus ES's guide price of 279,000 to 468,000 RMB is considered quite reasonable in the industry. Lexus's main marketing strategy is to position its models slightly lower in terms of class but compete with higher-class models, thereby lowering the price to create an illusion of high cost-performance, which attracts consumers. Due to this positioning strategy, these cars are sold at a higher price than models from a lower class. 2. The entry-level Lexus ES200 is equipped with a 2.0L naturally aspirated engine, which may feel underpowered, but for those who do not prioritize performance, the peace of mind, cost savings, and refined luxury design more than justify the price. Adequate power and space are sufficient; a car that is reliable, durable, and comfortable is more important.