While Tariffs Loom, Toyota and Lexus Crank up First-Half Sales
The automaker sees strong potential for the redesigned 2026 RAV4 and electric bZ crossover to boost sales later in the year.
Lexus exec Dejuan Ross said younger luxury buyers are not as patient as older ones, and that Lexus 'runs the risk of losing those buyers' if it can't supply them with vehicles.
Despite tariff hassles, a continued so-so electric-vehicle market, and sales declines from other automakers, both Toyota and Lexus had a good first half of 2025 in the US, with new highs predicted for the rest of the year.
Toyota Motor North America (TMNA) reported US sales of 666,469 Lexus and Toyota brand vehicles for the second quarter, up 7.2% versus the same period last year.
'We've had a really solid year so far,' said David Christ, group vice president and general manager of the Toyota division.
'Our June sales were over plan. Two out of three of the vehicles that hit dealer lots were turned around and sold that same month. We have a 12-day supply, with 76,000 units on the ground in retail stock.'
Christ said dealer lots have an average of 62 parked vehicles, but not counting pickup trucks it's only 37. 'We're producing a record number of vehicles,' he said.
The Toyota division results were strong on their own. For the second quarter, the brand moved 570,546 cars and trucks, up 7.1% compared to 2024 Q2.
Sales for the electrified lineup of 32 hybrid, plug-in hybrid or EV nameplates for the Lexus and Toyota brands cranked up 29.7% (320,817 units) for the quarter—nearly half of all TMNA sales.
Toyota's biggest problem, Christ said, was getting even more of the popular models built and delivered to dealers. Number one, by a wide margin, was Toyota's RAV4 (31,000 sold in June), 'which is just incredible,' he said.
The automaker sees strong potential for the redesigned 2026 RAV4 and electric bZ crossover (the latter, shared with the Subaru Solterra, now with 314 miles of range) to boost sales later in the year.
Dejuan Ross, group vice president and general manager of the Lexus division, described the first half of the year as very strong.
'We had the goal of 350,000 Lexus vehicles this year, building on the momentum of sales a bit north of 343,000 last year. But so far through June we are up 7% year-to-date, and are well on our way of exceeding 350,000 units.'
Ross said every month except June ended with a single-digit days' supply of vehicles (and June was 11 days). This situation has led to waiting lists of as long as two years for certain models at some dealerships.
In one of the few negative notes sounded during the call, he said younger luxury buyers are not as patient as older ones, and that Lexus 'runs the risk of losing those buyers' if it can't supply them with vehicles.
Toyota execs didn't seem eager to talk about the effect of President Trump's tariffs. But in response to a question, Christ said that from late March into early May dealerships did see 'a lot of pull-forward business' with buyers trying to get ahead of anticipated tariff-related price hikes and the potential loss of the $7,500 federal EV tax credit.
'Consumers are struggling with high auto prices and interest rates, and affordability is the buzzword among dealers now,' he added. Recent modest price hikes were business as usual, not a specific response to the tariffs, Christ said.
Toyota's RAV4 is now built for North America in both Kentucky and Ontario, Canada, which 'gives us different costs, depending on where the individual car is built,' Christ said.
For cars coming from Japan, 'the tariff is actually 27.5%, 25% plus the 2.5% that was already in place. We just hope the tariffs come down to a manageable level.'
The speakers said they hope the Trump administration and Japanese government get back to the bargaining table (negotiations are currently stalled), and work out a trade deal.
Is Toyota well positioned for the tariff turmoil expected to hit the auto industry in the second half? Please comment below.
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