Lexus will drop 3 models in Europe to focus on SUVs

Lexus will end sales of three models in Europe to put more emphasis on SUVs in the region.

Toyota's premium brand said that the CT compact hatchback, the IS midsize sedan and RC coupe would cease to be available in Europe once current stocks are depleted. It stopped production of the models for Europe this summer, a spokesman told Automotive News Europe.

"It's a decision based on the evolution of our portfolio," he said. "If you look at the sales of Lexus in Europe and the overall market, the evolution is going more toward SUVs."

The UX compact SUV was Lexus's top-seller in the first eight months of this year at 10,291, followed by the NX midsize SUV at 7,739, figures from market researcher JATO Dynamics show. The RX large SUV was the brand's No. 3-seller with 3,474.

Sales of the CT, the oldest model in Lexus's European lineup, were down 35 percent to 2,344 through August, with the IS at 1,101, a decline of 50 percent, according to JATO. The Japanese automaker sold just 422 units of the RC, which is a rival to the BMW 4-Series. Lexus, however, will continue selling the RC F performance car.

Lexus said it would also continue to offer the LS, despite selling just 58 units of the upper-premium sedan in the first eight months.

"The LS is our flagship. Despite the lower numbers it's a model that carries a lot of innovation and is a strong brand builder," the spokesman said.

An updated version of the LS, which is about to go on sale in Europe, will showcase new assisted driving technology. Lexus President Koji Sato said earlier this year the system will allow hands-free driving where permitted and will be capable of over-the-air updates.

Lexus will also keep the ES in the brand's European lineup, citing its comparative success in the region since the midsize sedan was launched in 2018. ES sales rose 3 percent to 2,346 units in Europe during first eight months, despite disruption caused by the pandemic.

Hybrids accounted for 96 percent of Lexus's first-half sales in western Europe. The brand recently launched its first electric car, a version of the UX SUV called the 300e.

Through eight months, Lexus's sales in Europe have held up better than the overall market, helped by strong demand for UX, according to JATO's data. Lexus posted a decline of 21 percent in a market that was down 33 percent during the period.