Lexus is the luxury vehicle division of Toyota Motor Corporation. Launched in 1989, Lexus was born from Toyota’s ambitious “F1” project to create a world-class premium sedan, which ultimately led to the debut of the iconic Lexus LS. Since then, Lexus has evolved into a global brand known for blending luxury, advanced technology, and refined performance.
Headquartered in Shimoyama, Japan, since 2024, with key operational centers in Brussels, Belgium, and Plano, Texas, Lexus is now marketed in over 90 countries and territories. It holds the distinction of being Japan’s best-selling premium car brand and consistently ranks among the top ten Japanese global brands by market value.
Production is primarily based in Japan, with key manufacturing sites in the Chūbu and Kyūshū regions, notably the Tahara and Miyata plants. The brand also made history by starting international production in 2003 with the Canada-built RX 330.
Lexus continues to push the boundaries of automotive luxury, integrating hybrid technology and cutting-edge innovation while expanding its global footprint beyond its original U.S. stronghold to markets across Asia, Europe, and Latin America.
Lexus Company History
1983
Toyota chairman Eiji Toyoda challenged his team to build the world's best car. This led to the inception of Project F1 ("Flagship One"), developing the Lexus LS 400 to expand Toyota's product line in the premium segment.
1985
In May 1985, Toyota researchers visited the U.S. to conduct extensive market research and focus groups targeting luxury consumers. Designers rented a home in Laguna Beach, California, to study American upper-class lifestyles and preferences.
1986
Toyota's longtime advertising agency, Saatchi & Saatchi, formed a specialized unit called Team One to manage marketing for a new luxury division. In the same year, the Image consulting firm Lippincott & Margulies was hired to develop potential names for the new brand. Out of a list of 219 names, top contenders included Vectre, Verone, Chaparel, Calibre, and Alexis. “Alexis” became the leading candidate due to its strong association with the character Alexis Carrington from the TV show Dynasty. The "A" was removed and the "i" changed to a "u," forming the final brand name “Lexus.”
1987
Various theories emerged around the name “Lexus,” including combinations like “luxury” and “elegance” or an acronym for “luxury exports to the U.S.” However, according to Team One, the name was selected to evoke a luxurious and technological image.
1988
The legal database company LexisNexis obtained a temporary injunction to prevent Toyota from using the Lexus name, claiming potential brand confusion. The injunction threatened the timing of Lexus's launch, but a U.S. appeals court lifted it, stating there was little likelihood of confusion between the two products.
1989
Three firms, Saatchi & Saatchi, Molly Designs, and Hunter/Korobkin, Inc., worked on the Lexus logo. The final result combined Saatchi & Saatchi’s typeface with the stylized “L” created by Hunter/Korobkin.
1989
Toyota completed the F1 project, which involved 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, approximately 450 prototypes, and more than $1 billion in costs. In January, the Lexus LS 400, the result of the F1 project, debuted at the North American International Auto Show in Detroit. It featured a brand-new 4.0 L V8 gasoline engine and rear-wheel drive.
1989
The first Lexus vehicles were manufactured at Toyota's Tahara plant in Aichi, Japan. This plant was highly computerized and known for precision manufacturing.
1990
Lexus recorded its first full year of U.S. sales, delivering 63,594 units of the LS 400 and ES 250 sedans, with the LS 400 being the majority. The brand also began limited exports to the UK, Switzerland, Canada, and Australia.
1991
Lexus launched its first sports coupe, the SC 400, which shared the LS 400’s V8 engine and rear-wheel drive layout. The second-generation ES 300 sedan also debuted, replacing the ES 250 and becoming the brand’s top seller. Lexus became the top-selling premium import brand in the U.S. with 71,206 vehicles sold..
1994
The second-generation LS 400 sedan was introduced, featuring design and performance upgrades over the original.
1995
Lexus faced a sales threat due to proposed 100% tariffs on upscale Japanese vehicles during a U.S.–Japan trade dispute. The conflict was resolved later that year when Japanese automakers agreed to increased investments in the U.S., and the sanctions were not implemented.
1996
Lexus debuted its first SUV, the LX 450, based on the Toyota Land Cruiser, marking the brand’s entry into the luxury utility segment.
1998
Lexus launched the RX 300, the first luxury-branded crossover SUV, targeting suburban buyers seeking SUV style without off-road capability. The RX became a massive success and eventually surpassed the ES as the brand’s top seller.
1999
Lexus entered motorsport with Team Lexus, fielding two GS 400 cars in the Motorola Cup North American Street Stock Championship. The team won its first race at Road Atlanta in its sixth outing.
2001
Lexus debuted its first convertible, the SC 430, along with a redesigned ES 300.
2004
Lexus recorded its 2 millionth vehicle sale in the U.S. and launched the RX 400h, the world's first luxury-branded hybrid SUV using Toyota's Hybrid Synergy Drive.
2005
Lexus officially separated organizationally from Toyota, with dedicated design, engineering, and manufacturing centers. The brand launched in Japan for the first time, along with expanded efforts in China and Europe.
2006
Lexus reached the top-selling import status in South Korea and Taiwan, and climbed to third in luxury car sales in Australia.
2007
Lexus announced the creation of its F marque performance division in January. The IS F made its debut at the North American International Auto Show alongside the LF-A concept car. In October, Lexus participated in the SEMA show for the first time with the IS F and introduced the F-Sport performance trim and accessories line.
2008
Lexus global sales declined by 16% to 435,000 units due to the global recession. Sales in the U.S. and Europe dropped by 21% and 27.5%, respectively.
2010
Lexus began a gradual sales recovery in North America and Asia, focusing on adding hybrids and new model derivatives.
2011
The Tōhoku earthquake and tsunami severely disrupted production in Japan, impacting Lexus’ sales. U.S. sales dropped 14%, ending Lexus’ 11-year streak as the country’s best-selling luxury brand.
2014
Lexus unveiled the NX crossover, its first turbocharged vehicle, badged as the NX 200t.
2020
Lexus launched the UX 300e, its first all-electric vehicle.
2023
Lexus introduced the LBX, its first B-segment vehicle. The model went on sale in Europe, Japan, Australia, and Southeast Asia.
2024
The Lexus LM350h was introduced, setting new standards in automotive luxury. Built on the Toyota Alphard platform, it offers unparalleled rear-seat opulence inspired by the Japanese concept of ‘Omotenashi’ (hospitality).
2025
The eighth-generation Lexus ES was launched at the 2025 Shanghai Auto Show, marking a significant shift towards electrification. For the first time, it offers both hybrid and battery electric vehicle (BEV) powertrains, along with front- and all-wheel drive options.