Toyota’s Plans for Lexus Production in the US
As reported by the Japanese publication Nikkei, Toyota plans to consolidate two Lexus plants in the US into one production site. This involves moving the production of the ES sedan, currently manufactured in Kentucky, to Japan as early as next year. However, Lexus will continue production of the TX SUV at the Indiana plant, as well as other models in Canada.
The American Market and Production Changes
Despite the US being the largest market for the Lexus brand, the company is nevertheless making the decision to close one of its two plants in the country. Currently, the ES sedan is produced in Kentucky, and the TX is produced in Indiana, but soon production will be concentrated at one facility. Kentucky will lose Lexus production, although Toyota will continue to manufacture its own vehicles at this site.
The new generation Lexus ES, introduced a few months ago and scheduled to appear in showrooms early next year, will be produced in Japan.
Strategic Changes and the Impact of Tariffs
According to Nikkei, the decision to make these changes was made in response to tariffs imposed by the Trump administration on imports to the US. Lexus will focus on producing popular hybrid models at the Indiana plant, while the production of other luxury cars will be moved to Japan.
These changes will not affect Lexus operations in Canada, where the RX and NX SUVs are currently produced. In Japan, Lexus has two plants: one in Tahara, Aichi Prefecture, which is five times larger than the soon-to-be-closed facility in Kentucky, and a plant in Motomachi, also in Aichi, which produces the LC model. The plant in Kyushu, Fukuoka Prefecture, produces the UX, NX, ES, and RX models.
IS Model Update
Lexus recently introduced the third facelift for the compact IS sedan, which has been produced in Japan since 2013. The update includes a sharper front end, new 19-inch alloy wheels, and an updated interior where the controversial touch controller and CD player have been removed.
A new electric power steering system and updated shock absorbers promise improved handling, but the powertrain is likely to remain unchanged. The hybrid IS 300h model is equipped with a 2.5-liter four-cylinder engine producing 217 hp, while the non-hybrid IS 350 has a 3.5-liter V6 producing 314 hp.
TX Model Lineup
The TX model, produced in the USA, has received a $500 price increase for the 2026 model year. The base version with a 275 hp gasoline engine now costs $57,090, the hybrid version with a 366 hp four-cylinder engine is $2,300 more expensive. The TX 500h version with a 404 hp hybrid V6 starts at $70,610, and the flagship TX550h+ Luxury costs $80,960.
These changes indicate that manufacturers are constantly adapting to global economic conditions, including tariff policies, which affects the distribution of production between countries. While maintaining a strong position in the US, Lexus is optimizing costs by moving some production to Japan, which may also improve quality control for certain models.