# The History of Lexus | Otto Explains | AutoTronix **Section:** Otto Explains **Canonical:** https://autotronix.om/otto/lexus-history **Language:** English **Arabic version:** https://autotronix.om/ar/otto/lexus-history --- ## Short Answer Lexus is Toyota Motor Corporation's luxury brand. Its story began with a challenge from Toyota chairman Eiji Toyoda in August 1983 to build a luxury car that could rival the very best, and the result, the LS 400, went on sale with the ES 250 in the United States in September 1989. Lexus reached Europe in 1990 and its home market of Japan in 2005, and its later turning points were hybrid power, the F performance cars and, since 2019, fully electric models. --- ## How did Lexus begin? In August 1983, at a secret meeting in Japan, Toyota chairman Eiji Toyoda asked a team of strategists, engineers and designers: “Can we create a luxury car to challenge the very best?” The project that followed was code-named F1, for Flagship One. Toyota's own history calls it the Circle-F project: the F, drawn inside a circle, marked a completely new model and stood for flagship. Toyota dates the start of the car's development to 1984, and Lexus's British history says the first of some 450 running prototypes was built in July 1985. --- ## Why did Toyota create a separate luxury brand? Toyota gives two reasons. As it began building cars in North America, room opened up in the import quota set by Japan's voluntary export restrictions, and owners of Toyota cars who wanted something more luxurious were moving to Mercedes-Benz or BMW because Toyota had no luxury model to offer them. Project members spent several months in the United States studying how luxury-car owners lived, and concluded that such a car needed prestige, high quality, strong resale value, advanced performance and a high level of safety. Lexus's American account adds that the teams decided the car would need a new brand, a new sales channel and an identity of its own. --- ## How was the first Lexus developed? The engineers worked to two principles Toyota still quotes: “Yet”, meeting two conflicting goals without giving up either, and fixing every problem at its source. An “anti-ageing” programme set out to make a well-used car look, feel, sound and drive no differently from a new one, concentrating on 96 key areas. The F1 project drew on 60 designers, 1,400 engineers and 2,300 technicians, and about 450 prototypes were built. The final design was approved in May 1987, after eight earlier proposals. How the car changed Lexus is covered in Otto's article on the legendary Lexus cars. --- ## Where does the name Lexus come from? The name Lexus was chosen in 1988 to suggest luxury and high-end technology; early alternatives included Alexis and Lexis. In November 1988 the F1 car became the LS 400, LS for Luxury Sedan and 400 for its 4.0-litre V8, and its smaller companion the ES 250, Executive Sedan with a 2.5-litre engine. How Lexus names its cars today is explained in Otto's guide to the Lexus model lineup. --- ## How did Lexus launch in 1989? The LS 400 and ES 250 were shown to the public in January 1989 at the Detroit motor show, and the first production LS 400 left the Tahara plant near Nagoya in May. Toyota began operating Lexus as a separate luxury sales network in the United States in September 1989; its launch release named 1 September, with about 65 dealers rising to 100 by the end of the year, and Lexus says only 121 dealers were chosen for its first year. In the first month, 2,919 LS 400s were sold. The LS 400 had a 250-hp 4-litre V8 and rear-wheel drive, while the ES 250 used a 2.5-litre V6 on the Toyota Camry platform. --- ## How did Lexus build its reputation in the early years? Soon after launch, complaints about faulty wiring and an overheating brake light led Lexus to recall 8,000 LS 400s. Technicians collected, repaired and returned the cars free of charge within 20 days, and Lexus still describes this as the moment it set a new standard for personal service. The brand reached Europe in 1990 with the LS 400 as its only model, and within a year of its launch it was present in 17 countries. In 1991 Lexus became the best-selling luxury import brand in the United States, ahead of Mercedes-Benz and BMW. --- ## How did the Lexus range grow after 1990? Lexus added the SC 300 and SC 400 coupés in 1991, designed at Toyota's CALTY studio in California, and the GS 300 saloon, unveiled in Detroit in January 1993. Its first SUV, the LX 450, was revealed in New York in 1995 and went on sale in early 1996. The RX 300 of 1998 opened a new segment, the luxury crossover, and the IS 200 of 1999 was the first Lexus developed specifically for Europe. Otto profiles the most memorable of these in his list of ten iconic Lexus cars. --- ## When did Lexus arrive in Japan and start building cars abroad? In its early years Lexus was sold abroad but not at home: in Japan the first LS went on sale on 9 October 1989 as the Toyota Celsior. Toyota launched Lexus in Japan in 2005 with a network of 143 new dealerships, and Lexus-badged cars were sold there for the first time. Production also spread beyond Japan: the RX 330 became the first Lexus built outside Japan, in Cambridge, Ontario, the ES 350 the first built in the United States, in 2015, and the TX the first Lexus SUV built in the United States, in 2023. --- ## What turning points followed after 2000? Three directions shaped the decade. In 2004 Lexus unveiled L-finesse, a design language inspired by traditional Japanese aesthetics, first applied to a production car with the GS of 2005. The RX 400h of 2005 was the world's first luxury hybrid SUV, and from then on every new Lexus range included a hybrid. In 2007 the IS F became the first car to wear Lexus's “F” performance badge, and the LFA supercar followed, with exactly 500 built by hand up to 14 December 2012. From 2012 the spindle grille, introduced on the GS, became the face of every Lexus. How these cars changed the company is explained in Otto's article on the legendary Lexus cars. --- ## How has Lexus moved towards electric cars? By February 2019 Lexus had sold 10 million vehicles, including more than 1.6 million self-charging hybrids since 2005. Later that year it presented its Lexus Electrified strategy and revealed its first battery-electric model, the UX 300e, on sale from the end of 2020. Its electrified sales passed 2 million in 2021, and in December 2021 Lexus set targets of 100 per cent battery-electric sales in Europe, North America and China by 2030 and worldwide by 2035. The RZ that followed was its first dedicated battery-electric car, built on a platform designed only for electric cars. Otto explains the differences between [hybrid, plug-in hybrid and electric cars](https://autotronix.om/otto/hybrid-vs-plug-in-hybrid-vs-electric). --- ## Who owns Lexus? Lexus belongs to Toyota Motor Corporation. Toyota's own history records that the company started the Lexus operation, and the brand is run through the Lexus International organisation. In October 2025 Toyota presented five brands, Century, Lexus, Toyota, GR and Daihatsu, with Century as its ultra-luxury brand, which Lexus says leaves it free to focus on its own place in luxury. Akio Toyoda described Lexus as the eldest son and Toyota as the younger brother. Toyota's own story is covered in Otto's separate series on Toyota. --- ## Where does Lexus stand today? As of October 2026, Lexus sums up its direction in one word, “Discover”, with the line “imitate no one”, presented at the Japan Mobility Show on 29 October 2025, where it also said that LS now stands for Luxury Space. Its newest models followed in quick succession: the eighth-generation ES of 2025, its first core model offered as both a hybrid and a fully electric car; the LFA Concept, an all-electric sports-car concept; and, in May 2026, the TZ, a three-row electric SUV unveiled at Toyota's Shimoyama technical centre, which Toyota calls the spiritual heart of the Lexus and GR brands. Lexus has also reached beyond cars, from the INTERSECT BY LEXUS space in Tokyo to its LY 680 yacht, sold outside Japan from September 2026. In 2022 Lexus said it was present in more than 90 countries. --- ## Common Questions **Was Lexus ever sold under the Toyota name?** In Japan, yes. Until Lexus launched there in 2005, the first LS was sold from 9 October 1989 as the Toyota Celsior. Lexus itself has always been Toyota Motor Corporation's luxury brand. **What was the first Lexus?** The LS 400 saloon, launched with the smaller ES 250 in the United States in September 1989. The first production LS 400 was built at Toyota's Tahara plant in May 1989. **When did Lexus come to Europe?** In 1990, with the LS 400 as its only model. Within a year of its launch, Lexus was present in 17 countries. **Where are Lexus cars made?** Lexus production began at Toyota's Tahara plant in Japan, and the LFA was built by hand at the Motomachi plant. Lexus models have since also been built in Canada, starting with the RX 330, and in the United States, starting with the ES 350 in 2015 and the TX in 2023. --- ## Related Otto Explanations - Why You Need a Pre-Purchase Inspection Before Buying a Used Car: https://autotronix.om/otto/pre-purchase-inspection - Dealership vs Independent Workshop: Where Should You Service Your Car?: https://autotronix.om/otto/dealership-vs-independent-workshop --- ## Related Services - AutoTronix PERFORMANCE: https://autotronix.om/performance - Performance Car Pre-Purchase Inspection: https://autotronix.om/performance/performance-pre-purchase - Performance Vehicle Maintenance: https://autotronix.om/performance/performance-maintenance --- ## Book a Service WhatsApp: +968 9966 7600 https://api.whatsapp.com/send/?phone=96899667600&type=phone_number&app_absent=0 Location: Mabellah Industrial, Street 7, Muscat — Saturday to Thursday, 9 AM to 9 PM