Toyota’s Strategy for the Premium Segment
Toyota is rethinking its premium lineup, elevating the Century name to the status of a separate brand and hinting at global expansion with a wider range of models. Since Lexus is the group’s primary premium brand, questions arose about a potential conflict in their roles. However, Toyota has a clear plan to differentiate Century while giving Lexus new freedom of action.
Company Chairman’s Statement
During a recent statement and panel discussion before the Japan Mobility Show, Chairman Akio Toyoda spoke about his decision to elevate Century’s role in the lineup. He noted that until now, its place had not been defined, adding that he wanted to create something “above Lexus”.
Morizo acknowledged that since Toyota is a mass-production manufacturer, Lexus ultimately borrows cars that are sold in large volumes. However, the brand “must go beyond” in higher-class segments. Toyoda believes Century should take on this role, being in a “class of its own”.
Current Status and Future of Century
Currently, Century has a two-model lineup, including the traditional sedan first introduced in 1967 and a large SUV that debuted in 2023. The One of One concept, presented in Tokyo, showcases a possible luxury two-door coupe with increased ground clearance.
Furthermore, the company demonstrated its willingness to experiment with custom orders, including a unique convertible based on the Century SUV, designed for parades.
Lexus’s Position and Its Future
On the other hand, Lexus has a wide range of models, from the compact LBX SUV to the flagship LS sedan and the full-size LX SUV. Additionally, the company recently introduced the Sports Coupe concept, which could evolve into a high-performance electric model. However, Toyoda had even bolder plans for Lexus’s future.
The LS (Luxury Space) concept is a fully electric six-wheeled minivan with three rows of seats, debuting in Tokyo. Interestingly, the model is not just a futuristic design project but conveys Lexus’s vision for a “new form of luxury car,” which could potentially replace the outdated LS sedan.
Historical Context and Development Strategy
Toyoda recalled the origins of Lexus in 1989 and explained why he wanted something radical for the future flagship:
“At that time, the flagship car of Toyota was the Crown. Above the Crown, there were many European premium brands. The LS was the first car that tried to take a place there. Since then, we have expanded our lineup, but decided to return to the origins of the LS and think about what the future Lexus flagship with a driver should be, not limited to a sedan. The words chosen to represent the direction of the Lexus brand were ‘DISCOVER’ and ‘not imitating anyone’.”
Differences Between the Brands
Simon Humphries, branding and design director, emphasized the difference between the two brands from a strategic positioning standpoint:
“In a sense, Lexus will be freer to act. Lexus must continue to take on challenges as a pioneer. Century will handle the high-end market as the peak of peaks, one of a kind.”
New Mottos and Visualization
This is also evident from the choice of mottos in the new video teasers. Century chooses “One of One. One in this world, from this country,” while Lexus opts for “Discover – We don’t copy anyone.” The company also published a “Brand Formation” chart showing the respective position of each brand.
This separation is further emphasized by the new mottos of each brand. Century adopts “One of One. One in this world, from this country,” while Lexus chooses “Discover – We don’t copy anyone.” Finally, Toyota published a new “Brand Formation” chart demonstrating the hierarchy in its portfolio.
Toyota
These changes reflect a deep transformation in Toyota’s approach to brand management, where each receives a clear identity and strategic autonomy. Expanding Century to a global level could create new opportunities to compete with other elite manufacturers, while Lexus, focused on innovation, could accelerate the development of electric and autonomous technologies. Such differentiation will allow the group to cover different market segments, avoiding internal competition and strengthening its overall global presence.