On the Dash:
- Lexus expects U.S. sales to exceed 360,000 vehicles in 2025, driven by strong demand for SUVs and crossovers.
- Limited production capacity has led to tight inventories and long wait times for popular models such as the GX.
- A broader SUV lineup and strong hybrid offerings have helped Lexus rebound from a prior sales slump.
Toyota’s Lexus brand is closing out a record year in the U.S., with demand for its SUVs outpacing supply and leaving some buyers waiting months for deliveries.
According to the automaker, U.S. Lexus deliveries are expected to rise about 5% in 2025 to more than 360,000 vehicles, primarily driven by the RX midsize SUV and an expanded lineup of crossovers and sport utility vehicles. SUVs and crossovers now account for more than 80% of Lexus sales volume, helping position the brand among the leading luxury nameplates in the market.
Demand has been especially strong for newer models, such as the GX, with inventories falling to less than three days’ supply nationwide in late December. Dealers report demand far exceeding available inventory, pushing buyers to secure vehicles at sticker price and, in some cases, search beyond their local markets.
However, production constraints remain a key challenge, as many Lexus models are imported from Japan and are subject to U.S. tariffs. While Toyota’s global manufacturing network is operating near peak capacity, the company is working to increase output of the updated GX and the U.S.-built TX, a three-row SUV that has become a strong seller and has attracted new customers to the brand.
Lexus’ recent momentum follows a broader product overhaul after years of flat sales and an aging lineup. The brand has reduced its sedan offerings while investing heavily in SUVs that better align with U.S. consumer preferences. That strategy has been reinforced by strong demand for hybrids, which now account for nearly half of Toyota and Lexus vehicle sales in the U.S., even as growth in fully electric vehicles has slowed.
Ultimately, Lexus faces intensifying competition as luxury features become more common in mass-market vehicles, narrowing the gap between premium and non-luxury brands. Capacity limits could also constrain near-term growth, while Toyota’s introduction of the ultra-luxury Century brand may reshape the company’s high-end positioning. Even so, Lexus executives view recent sales levels as a new baseline rather than a peak, provided broader market conditions remain supportive.
