Lexus is entering the EV space, should Tesla be worried?
Japanese luxury automaker Lexus celebrates 30 years of existence and plans to take a big step into the future with electrified cars. The company announcement that it would launch electrified versions of all its cars by 2025. The question that lingers in most investors’ minds is whether this is a cause for concern for Tesla?
Things won’t be that easy for Lexus. He will face stiff competition from Elon muskis Tesla in the United States and Europe. While Musk previously mentioned on Twitter that the company will eventually focus on autonomous robot taxis instead of non-autonomous vehicles, Tesla is still a force to be reckoned with. Performance and price will be the two most crucial aspects of any new cars Lexus launches in these markets.
An electric pivot for Lexus
At a recent Lexus Milestones event held to celebrate its three decades of existence, the Japanese automaker ensured the world sees its vision for the future. The company not only plans to increase the number of electrified vehicles for its users throughout its range, but is also venturing into autonomous driving technologies.
Koji Sato, executive vice president of Lexus International, addressed reporters on Thursday and noted,
For Lexus, “electrified” means a car that could be a combination of battery electric vehicles and hydrogen fuel cell, plug-in hybrid or autonomous hybrid. Lexus keeps all its options open but has not yet chosen a particular path towards electrification. The final choice will depend on the market where their cars are sold and the needs of the car owners.
Take a localized approach
“There is not a single power plant that will work for the world. The reality is that legality and different social conditions have created a landscape where automakers have to offer a variety of choices. “
He also said the company would choose the right option for each model based on the track record and market demand.
The company, according to Sato, is very serious about fuel cell electric vehicles (FCEVs), but it carefully ponders the deployment of hydrogen based on local infrastructure conditions. For example, in a market like the United States, there will be more plug-in hybrids, hybrids, and battery-electric vehicles.
Lexus is trying to focus on the next generation of luxury car owners who want to use electric vehicles but don’t want to compromise on capability, range and performance. There will be a dedicated pure electric vehicle platform from Lexus that will be designed to appeal to this part of their user base.
Lexus currently has 11 car models in its portfolio, and all but five are available as hybrids. The biggest challenge for the company will be to electrify its SUV variants where power and performance are central.