by Toyota’s Strategy for Two Luxury Brands
Earlier this month, Toyota announced the transformation of Century into a separate ultra-luxury brand, which caused some surprise since this marque has only two models – a sedan and an SUV – that are almost unknown outside Japan.
Explanation of the Decision Through Internal Sources
The company’s corporate publication attempts to explain this move, which is linked to Toyota Chairman Akio Toyoda. He believed that
“Century did not have a clearly defined place”
in the brand lineup, so it was decided to spin it off into a standalone marque.
Difference Between Century and Lexus
Lexus remains a premium brand, while Century is positioned in the ultra-luxury segment. Toyoda noted that having the Toyota logo on the Century limited its potential, comparing this to placing a Volkswagen emblem on a Bentley car – an unacceptable option for competing at the highest level.
Prospects for Expanding the Century Model Range
The creation of a separate brand likely signals plans to expand the Century model range and introduce it to new markets. Although specific details have not yet been disclosed, the brand has already presented a high coupe concept for the Japan Mobility Show, which may indicate future new products.
New Freedom for Lexus
Toyota’s Chief Brand Manager Simon Humphries noted that the changes will allow Lexus to move more freely. He said that
Lexus can now “move forward as a pioneer”
, while Century will focus on luxury.
Bold Concepts and Lexus Innovations
The manufacturer claims that Lexus has gained the opportunity to implement bolder ideas, for example, reimagining the LS model as a six-wheel premium minivan. If LS originally meant “luxury sedan,” it is now considered a “luxury space.” Akio Toyoda added that it is time to move from imitation to improvement and innovation so that some models reach a new level.
These changes reflect a global trend of differentiation in the automotive industry, where manufacturers are trying to more clearly delineate brand positioning to reach different target audiences. Similar strategies have already been implemented by competitors such as Hyundai with Genesis or Nissan with Infiniti, but Toyota emphasizes the uniqueness of each brand, not just creating another luxury sub-brand, but forming separate development philosophies. This could foster more innovative solutions from both sides, as engineers and designers receive clearer guidelines for their work.
