- Comparison Between European and Middle Eastern Markets
- Lexus's High-End Strategy
- Challenges and Opportunities of Electrification
- Outlook
In 2024, Toyota continued to cement its position as a global market leader, achieving a record-high in sales in Europe and offering critical insights into the transformation of the Middle East market.
According to data from Toyota Motor Europe (TME), in the first nine months of 2024, a total of 912,671 Toyota and Lexus vehicles were delivered, marking a 6% increase year-on-year. This growth significantly solidified Toyota’s position as the second-largest passenger car brand in Europe, while Lexus emerged as the fastest-growing premium brand.
TME also saw a steady increase in the proportion of electric vehicle sales across Europe:
Western Europe: 78%
Eastern Europe: 57%
Overall: 75%
Behind these achievements, the Toyota brand sold 848,974 vehicles, up 5% from the previous year. Top-selling models included the Yaris and Corolla series, as well as the newly launched Toyota C-HR.
Furthermore, Toyota's investment in electrification has paid off significantly, with electrified models comprising 74% of overall sales. Sales of battery electric vehicles (BEVs) increased by 19% year-over-year, while plug-in hybrid vehicle (PHEV) sales, boosted by the launch of the Toyota C-HR PHEV, surged by 93%.
Comparison Between European and Middle Eastern Markets
While Europe leads the way in the global transition towards electrification, consumers in the Middle East still demonstrate a significant demand for fuel-powered and hybrid vehicles. For instance, the 2024 sales data shows Toyota’s top-selling hybrid models in Europe:
Yaris Cross Hybrid: 150,535 units
Yaris Hybrid: 119,273 units
Corolla Hybrid: 67,754 units
RAV4 Hybrid: 74,099 units
Hybrid vehicles are equally popular in the Middle Eastern market, especially the RAV4 HEV and Camry HEV, which are favored for their robust range and cost-effective performance.
In contrast to Europe’s rapid shift to full electrification, the Middle Eastern market’s transition towards electric vehicles focuses more on practicality and a gradual transition. Many consumers still prefer fuel-powered vehicles, although the acceptance of hybrid and electric models is gradually increasing.
Lexus's High-End Strategy
Lexus has demonstrated impressive performance in the first nine months of 2024, with a sales increase of 17% year-over-year. In the Western European market, electrified models have achieved a 100% ratio, while across all of Europe, the figure reaches 90%.
Sales figures for the main electrified models are as follows:
NX Hybrid/Plug-in Hybrid: 18,024 units
LBX Hybrid: 16,216 units
UX Hybrid/BEV: 8,132 units
RX Hybrid/Plug-in Hybrid: 7,764 units
Lexus's success in Europe has provided valuable insights for the brand's strategy in the Middle East. In that region, Lexus is the preferred choice among luxury brands, renowned for its upscale positioning and reliability. The Lexus LX, for instance, has become one of the best-selling models in the Middle East. The new generation Lexus LX700h has debuted and is expected to enter the Middle Eastern market next year.
Challenges and Opportunities of Electrification
Despite the continuous rise in the proportion of electrification in the European market, the penetration of electric models by Toyota and Lexus in the Middle East market remains comparatively low. However, with increased government support for electric vehicles and the gradual improvement of charging infrastructure, sales of electric vehicles in the Middle East are expected to grow.
The experience accumulated by Toyota and Lexus in the global market enables them to rapidly respond to the changing demands of the Middle Eastern market. For instance, Toyota's diverse selection of electric models, along with Lexus's comprehensive electrification strategy in the premium market, are set to play a crucial role in driving the brand's development in the Middle East.
Outlook
Overall, the historic sales performance of Toyota and Lexus in the European market during the first nine months of 2024 not only highlights their strong competitive edge but also provides valuable insights for the Middle East market.
The high acceptance of hybrid models among consumers in the Middle East lays a solid foundation for Toyota and Lexus to further promote electric models. In the future, with the continuous advancement of electrification technology and the gradually increasing demand for environmentally-friendly transportation in the Middle East, Toyota and Lexus are expected to maintain a robust growth momentum, while injecting more vitality into the sustainable development of the regional automotive industry.
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