Lexus GX460 US Sales Doubled Since 2014 Facelift

Lexus announced its April 2014 sales stat yesterday, and it can be seen the GX460 sales is 2.5 times of the same month last year.

If we look closer we can see the trend that beginning October 2013, the GX’s sales volume started to explode. In Octorber 2013, Lexus sold 1.65 times of what it sold in October 2012; and even the extensive wind chill monthes earlier this year did not impact its sales at all, doubling the number of the same month in the last year.

This is a very good case for marketing analysis. It tells us two important facts that makes your product to be successful: 1. price; 2. external appearance.


Compared the 2014 model to 2013 model, the GX460 lowered the base MSRP by almost $5,000; and the front of the SUV also gains the Lexus family spindle grille. There is no mechanical changes or enhancements, but obviously the mass population like the price drop and refreshed appearance very much, and vote using their wallet.

This case also indicates the price elasticity of demand for US market luxury SUV around this price range is very large: the price change between 2013 and 2014 base model is only 8.8%, but the sales volume increased 150%, therefore the price elasticity of demand = 17. This means 1% of price drop can lead to 17% more sales.

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