As the global automotive industry landscape is undergoing dramatic turbulence in the wave of electrification and intelligence, competition in the Chinese market, as the largest automotive market, has long gone beyond the struggle for a single product and evolved into a competition of systematic capabilities. 2025 marks the 20th anniversary of Lexus' entry into the Chinese market. This luxury brand, known for its "Oriental aesthetics" and "craftsmanship", is responding to the question of the times with a profound transformation from products to strategies - promoting localization is not only a choice for survival, but also a stepping stone to the future.
From "Import Myth" to "Made in China"
The booming new energy vehicle market in China has rewritten the rules of the luxury car market. In 2024, China's imported car market declined, and the share of domestic brands in the high-end market above 300,000 yuan increased significantly, directly impacting the moat of traditional luxury brands. In such an environment, Lexus has maintained sales of more than 180,000 vehicles, becoming the only growing luxury brand. However, the author thinks that Lexus has already developed a sense of crisis.
Against this background, Lexus' plan to build an electric vehicle and battery R&D and production plant in Jinshan, Shanghai has been put on the agenda. As the second foreign-invested automobile company to build a factory in Shanghai after Tesla, the project is scheduled to start production in 2027.
Behind this decision is the fact that the maturity of China's new energy vehicle industry chain is sufficient to support "reverse technology output". From batteries, smart driving to insights into user needs, the experience of the Chinese market is becoming a "testing field" for Toyota to advance its global electrification transformation.
"Dialogue of Time and Space" of Oriental Aesthetics in the Past Twenty Years
Twenty years ago, Lexus entered the Chinese market and, with its high-quality products and services that exceeded expectations, it opened up a unique oriental path in the luxury car market dominated by BBA. As of August 2024, the cumulative sales of the ES single model in China exceeded one million, becoming a phenomenal product in the mid-to-large luxury sedan market. However, faced with the generational change of users in the era of smart electric vehicles, Lexus needs a more thorough self-innovation.
At a time when the wave of intelligent electrification is sweeping the global automotive industry, Lexus has made a stunning debut with the all-new ES, sounding a strong note of change in the luxury car market. This strategic model, which made its global debut at the Shanghai Auto Show, has not only gone through seven generations of glory, but also heralded Lexus' new transformation in the era of intelligent electrification with its forward-looking design that breaks through classics, harmonious space that touches the heart, just the right amount of technological empowerment, and mission-enhancing safety protection.
As a pioneer in the brand's move towards an electrified future, the all-new ES is an elegant evolution, drawing inspiration from the next-generation pure electric concept car LF-ZC and reshaping the visual language of luxury sedans. The spindle-shaped body not only creates the golden ratio of the sedan, but also creates a strong visual impact through the sloping roofline and sculpted waistline. The double L-shaped headlights on the front face enhance the brand recognition, while the through-type taillights outline the elegant rear profile in the night.
Inside the cabin, the new-generation ES condenses Eastern philosophy and modern technology into a design philosophy of “the art of condensing time”. The green bamboo-colored interior is inspired by nature and is paired with the first-of-its-kind bamboo-layer translucent panel technology. When the hidden response buttons light up quietly at the touch of fingertips, it seems to start a spiritual dialogue between people and cars. The mobile living room composed of the front "Comfort Co-pilot" kit and the back "Premium Seats", combined with Mark Levinson audio and breathing lighting effects, makes every trip an immersive sensory experience. This deep interpretation of space and emotion is exactly Lexus’ unique understanding of “luxury with warmth”.
The new generation ES is based on the GA-K platform and achieves a perfect balance between precise steering feedback and ride comfort through the coordinated work of DRS dynamic rear-wheel steering and AVS adaptive variable suspension system. The real innovation lies in the provision of its multi-path power system - in addition to its best 300h hybrid model, the ES 350e and ES 500e pure electric models give this traditional luxury sedan a new era mark, equipped with a large-capacity chassis battery, and the ES 500e is equipped with a DIRECT4 intelligent all-wheel drive system, providing stronger and more stable driving performance. This "man-car unity" driving experience makes pure electric luxury no longer just an environmental declaration, but a tangible and perceptible technological art.
In the field of intelligent safety, the evolution of Lexus' intelligent safety assistance system is also worthy of attention. The adaptive cruise control system and driver monitoring system have been expanded to provide predictive safety support even in complex road conditions. This wisdom of "preventing problems before they occur" is Lexus' firm implementation of the vision of a "zero traffic accident society".
From launching the LS in 1989 to opening a new era of electrification with the all-new ES in 2025, Lexus has always played the role of a transformer in the luxury car industry. Faced with the century-old changes in the automotive industry, this luxury car built specifically for the Chinese market not only reshapes the luxury standard with technological innovation, but also provides a new definition of "mobility equality" for the global automotive industry with oriental wisdom. When the through-type taillights of the new generation ES draw an elegant arc in the night, it illuminates not only the road, but also the firm direction of Lexus to continue to lead the trend in the era of smart electrification.
Toyota's "Chinese Answer" and Global Outlook
The localization of Lexus is essentially the "China projection" of Toyota's global strategy. From the establishment of Lexus in Shanghai to the establishment of the Toyota brand's Regional-Chief Engineer system in China; from the cooperation with BYD on BEV to the commercial testing of hydrogen fuel cells for commercial vehicles, Toyota is transforming the innovative potential of the Chinese market into global competitiveness with its multi-path new energy technologies and deepening localization strategy.
at last
Lexus' 20-year journey in China is like the evolution history of a multinational automobile company. From gaining market favor by relying on imported quality to integrating into the Chinese industrial ecology through localization, every decision it makes reflects the changes of the times. Now, the layout of the Shanghai factory and the debut of the new generation ES are not only Lexus’ answer to the future of electrification, but also a continuation of its original intention of “making better cars.”
At present, "Chinese needs" has become the starting point of Toyota's global research and development, and "Oriental aesthetics" and "technological equality" have been deeply integrated. The right to define luxury cars will eventually belong to those brands that truly understand and respect this land. And Lexus is undergoing a transformation.
