Toyota Begins Development of Lexus Brand

Toyota initiated the development of the Lexus brand to enter the luxury vehicle market, aiming to compete with established luxury automakers. The project began in secrecy, with a significant investment exceeding $1 billion allocated for research, design, and marketing. The primary objective was to create a division that would effectively market and service luxury vehicles in regions outside Japan, particularly in North America, where demand for premium automobiles was growing. This strategic move was influenced by the success of competitors like Acura and Infiniti, which had already established a foothold in the luxury segment. The development process involved extensive market research and the creation of a flagship model, the Lexus LS, which was designed to meet the expectations of luxury car buyers. The LS was engineered to offer high performance, advanced technology, and superior comfort, setting a new standard in the luxury sedan category. The introduction of Lexus not only expanded Toyota's product lineup but also positioned the company as a serious contender in the global luxury automotive market.