Lexus discontinues IS in Vietnam

Two Lexus dealers in Hanoi and Ho Chi Minh City said there will be no new version of IS from the beginning of 2024. On the company's website, information about Lexus IS is no longer available.

A representative of Lexus Vietnam confirmed the information about stopping selling IS but did not give a specific reason. Some Lexus sales staff said that IS has low sales. The preference of users for high-chassis vehicles has made the company want to focus on promoting key models such as RX and NX.

In the small luxury sedan segment, before the Lexus IS, the Volvo S60 model has also stopped selling since early 2023. The Swedish brand representative said that low sales of the S60 were the main reason for the discontinuation of this model.

According to a luxury car sales expert in Ho Chi Minh City, the small luxury sedan segment is a bridge for customers from popular cars to higher-end cars. The huge influence of the domestically assembled Mercedes C-class and BMW Series 3 makes it difficult for remaining competitors such as the Volvo S60, Lexus IS or imported Audi A4.

As for the Lexus IS, the current generation was launched in the Vietnamese market in 2021. Before being discontinued, the IS was distributed in three versions, including the IS 300 Standard priced at VND 2.13 billion, the IS 300 Luxury priced at VND 2.49 billion and the IS 300h priced at VND 2.82 billion. Meanwhile, the Mercedes C-class is priced at VND 1.388-2.179 billion, the BMW Series 3 is priced at VND 1.435-1.809 billion, all of which are much lower than the IS.

Compared to its two German rivals, the Lexus IS has a weaker identity in the segment. The IS has a youthful, individual design on the exterior but the interior is less refined and modern than its rivals. The Lexus IS's sporty performance is also somewhat inferior to the C-class or Series 3.

After stopping selling the IS, Lexus' low-slung segment now has only two models, the ES and LS. Currently, all Lexus cars are imported from Japan.